What a chart, further to go, or not
Comments please

Believe that a.o PMO has hedged 2016 production -a long time ago-at $75/80 p/bbl on futures mkt-if that is the case then the dramatic fall in sp is greatly overdone as in my humble opinion we will see a (modest?) rebound in crude lvls during 2nd h 2016 due OPEC members putting pressure on Saudi

but don't forget iran coming on stream

Difficult to gauge how Iran envisages to plug holes in balance of payments but am sure that they can work out that -revenue wise- 2x$30 p/bbl equates to 1x$60 p/bbl ( i believe my sums are right...lol)

Trading statement from PMO on Thurs 12th Nov.

Premier today provides the following trading update for the period 1 January to 31 October 2015.

Highlights
· Production averaged 57.5 kboepd year to date; ahead of full year guidance of 55 kboepd
· Solan on track for first oil before the year end, subject to weather
· The Catcher project remains on schedule and on budget; successful 2015 subsea programme completed; initial development drilling results encouraging
· Pre-FEED work on Sea Lion complete, world class preferred contractors selected
· Cost reductions of over 25% delivered for 2015 in operating costs and G&A spend; further cuts forecast for 2016
· Significant liquidity with cash and undrawn bank facilities of $1.2 billion; year-end covenant headroom forecast to be in excess of $700 million

Tony Durrant, Chief Executive, commented:
"Premier continues to benefit from stable production and valuable hedging contracts. Commissioning on the Solan project progressed well during good autumn weather and the field remains on track for first oil by year-end. The Catcher project is on schedule and on budget. Looking ahead, we see reduced capital expenditure and significant cost reductions for both our current and future projects to mitigate the current oil price environment."

http://www.moneyam.com/action/news/showArticle?id=5151736

StockMarketWire.com
Premier Oil has agreed to sell Premier Oil Norge AS, which comprises all its Norwegian assets, to Det norske oljeselskap ASA for USD120m cash.

Proceeds would be used to pay down the Company's debt and represents another step in Premier's previously stated programme of portfolio management.

The transaction is subject to the receipt of government approval and is expected to complete by year-end.

Multi-year low
2517

Lots of re-financing next 6 months for many of these indebted oilers and you can't see the banks wanting out but blood. Carnage ahead sadly for oilers.

Getting hammered some more as is TLW

Crude about to drop below $40 pb might have something to do with it!

Yes HARRY and despite the fact they bounce big when they do i have lost the bottle to play any small oilers at the moment , which ones will go to the wall.

new low.

Nice to see your cheery posts first thing in the morning mitzy! ;o)

Lol..

Its down 11% today Harry its not going up I know.

Oil outlook continues to sink - By Motley Fool | Tue, 15th December 2015 - 16:39

fossil fuel colossus Premier Oil (LSE:PMO) was also subject to a negative assessment of its revenues picture in Tuesday business. But unlike the tech play, I believe the outlook for the 'oilie' is far more grave.

Ratings agency Moody's took the hatchet to its Brent forecasts for 2016 today, reducing its assessment to $43 per barrel from $53 previously. Rising production from OPEC is likely to overshadow demand improvements in the US, China, India and Russia, Moody's said, and predicted that prices will only rise by around $5 per barrel in 2017 and 2018.

"Increasing consumption will not match the increase in supply," Terry Marshall, a senior vice-president at Moody's, said. "It will take time for... large global inventories to unwind, and combined with the possibility of new supply coming online from Iran, we expect oil prices to remain lower for a longer period than previously anticipated."

With Premier Oil's top line under increasing pressure as crude prices tumble, and the firm's capex-heavy operations push net debt higher -- this rose to $2.3bn as of October, up from $2.1bn three months earlier -- I believe the producer remains a risk too far for savvy investors.


oil price

2 month chart is 1 day behind

Saxo have oil spiking to $100 in 2016 on their 'outrageous' predictions. CNBC this morning.
2517

Looking dire here George.

Certainly is mitzy, I'm fortunate in that I don't hold these. Saxo reckon that Saudi's/OPEC will need to do something to increase the oil price as they are all struggling atm and they are selling other assets to get by. Not certain but I think he said their debt is 22% of GDP. So this could be a raging buy.
2517

far far far too late i have lost patience with these, but still hold TLW on which i doubt i'll ever see a profit

however, of the pair, TLW looks the better and safer bet for a number of reasons

Got a feeling next year will be much the same.