Premier Oil has revealed its production levels are ahead of expectations.
Production in the year-to-date has averaged 57,100 barrels of oil equivalent per day (boepd), ahead of full-year guidance of 55,000 boepd, even after summer maintenance, which has been completed.
The figures do not take into account Premier’s new North Sea project, Solan, which is due to come on stream in the fourth quarter and which should further boost daily output. Completion of the commissioning of the subsea infrastructure is also progressing well.
As a result of significant cost savings, Premier continues to expect full year opex of $16/boe.
The company said it has significant liquidity with $1.3 billion of cash and undrawn credit facilities. Its principal $2.5 billion bank facility is not due for refinancing until mid-2019.
Premier has hedged approximately 60% of its 2015 second-half liquids production at $92/bbl and 30% of its expected liquids production in 2016 at $68/bbl.
Good offshore productivity and 97% uptime has been achieved with the Regalia flotel.