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

StockMarketWire.com
Premier Oil delivered record production of 82.1 kboepd, an increase of 34.5% on the prior period (1H 2016: 61 kboepd)

OPERATIONAL HIGHLIGHTS:
- Catcher FPSO sailaway to North Sea imminent; positive development drilling results

- Heads of Terms signed for new infrastructure partnership for Tolmount project

- World class Zama oil discovery, offshore Mexico

- Disposal programme ongoing, including potential sale of interest in Wytch Farm field for $200m

FINANCIAL HIGHLIGHTS
- Cash flows from operations of $292m (1H 2016: $108.7m), up 168% on prior period

- Opex of $14.7/boe, down 11% on the prior period

- Positive free cash flow in 1H, reducing net debt to $2.7bn

- Profit after tax of $40.7m (1H 2016: $167.1m including one-off non-cash credits)

- Comprehensive refinancing completed

OUTLOOK
- 2017 production guidance increased to 75-80 kboepd, from 75 kboepd

- 2017 opex guidance of <$16/boe maintained, capex guidance recently lowered to $325m

- Catcher on schedule for 2017 first oil; improved field production profile now anticipated

- Further debt reduction forecast at year end at current oil prices including effects of ongoing planned disposals

- Debt reduction accelerating once Catcher on-stream; targeting leverage ratio of 3x EBITDA by end 2018

Analysts at Jefferies upgraded their view on shares of Premier Oil even as they marked down their medium-term Brent oil price deck assumptions. In their view, the improvement in Premier was accelerating given multiple recent events including a production increase, Catcher plateau increase, Zama discovery size increase, Tolmount funding agreement and the Wytch farm asset sale.

That combination of events led the broker to boost its target price for the shares by 32% to 90.0p, even in the face of its downward price-deck revisions for Brent oil.
Jefferies took down its 2017 Brent price projection from $55 a barrel to $52, that for 2017 from $64 to $57 and that for 2019 from $67 to $60.

In particular, the broker emphasised that, unlike at other levered UK peers, Enquest's debt refinancing was now complete. Furthermore, and acting as a catalyst, ramp-up at Catcher was ahead and after just one well the Zama discovery in Mexico - at 600bn barrels of oil - appeared simply "world class".

Decided to buy a few of these today as oil price moving back up and catcher on tap soon all looking very promising.

StockMarketWire.com
Premier Oil's production has averaged 76.6 kboepd year-to-date and the company said it is on track to meet its previously increased full year guidance of 75-80 kboepd.

The planned third quarter maintenance has now been completed. The group's disposal programme is ongoing, including sale of Wytch Farm field for $200 million.

Operating costs for the full year are forecast to be around $16/bbl with a gross G&A of $150 million, while development, exploration and abandonment expenditure is expected to be $300-310 million, down from previous guidance of $325 million.

Net debt was $2.8 billion at 30 September.

Having been in the oil bizz for 40 years (albeit not in exploration) I can only say that offshore exploring is going to lose hands down to shale oil as they can "blow you out of the water" whenever they like!!!- if you do not think so ask OPEC members who at last are coming to their senses and are virtually waiving white flags.

PREMIER OIL PLC 
("Premier")
Update on the Sale of Wytch Farm
  20 November 2017
 
Premier is pleased to announce that it has today entered into a sale and purchase agreement to sell its interests in Licences PL089 and P534, containing the Wytch Farm field, to Perenco UK Limited on materially the same terms as have been previously disclosed in an announcement released on 12 September 2017 and in a trading update released on 16 November 2017. These include unchanged cash consideration of US$200 million and the release of Premier from letters of credit totalling approximately US$75 million (the "Disposal").
 
As the Disposal constitutes a class 1 transaction for Premier under the Listing Rules, a circular setting out further information regarding the Disposal and containing the Notice for a General Meeting is expected to be posted to shareholders tomorrow.

PREMIER OIL PLC
("Premier")
Catcher Area First Oil
27 December 2017
Premier is pleased to announce that first oil from the Catcher Area was safely achieved at 15.45 hours on 23 December 2017.
Initial stabilised production from the Catcher field will be at an expected rate of around 10,000 bpd. This will be ramped up in phases with production from the Varadero field followed by the Burgman field, as previously guided. The phased approach allows for management of the well stock whilst commissioning of the gas processing modules and full water injection systems on the FPSO are completed. Production in the Catcher Area as a whole will increase to approximately 60,000 barrels of oil per day during the first half of 2018, adding 30,000 bopd (net) to Premier's daily production.
A short brochure containing more details of the Catcher Area development is available on the Company's website www.premier-oil.com

Tony Durrant, Chief Executive, commented:
"Delivery of first oil from the Catcher Area represents a significant milestone for Premier. I congratulate and thank all our colleagues, partners, suppliers and regulators who have played such an important part in successfully delivering the project on schedule and almost 30% under budget. Catcher is an example of Premier Oil's capability to deliver full cycle FPSO projects from exploration through to production. As production ramps up in the first half of 2018, the increased cash flows will play an important role in Premier's plans for debt reduction. The Catcher Area project also demonstrates Premier's continuing commitment to invest in the UK."

Looking pretty good here....along with GFM....doing fine......

GFM (mining) is almost untradably illiquid and frankly has no connection at all with PMO (oil)

Catcher in the Briny

http://http://www.bbc.co.uk/news/uk-scotland-scotland-business-42491696

Cynic....GFM is a good one....how many are you trading for pete's sake ?....I'll put something interesting on that thread shortly.....anyway...this looks good to me (PMO)...this has the sealion prospect along with rockhoppper...the higher crude goes...the more it is viable.....

sorry to digress ....
GFM ....... illiquid because even the average volume is <250k and sp is too easily manipulated as it's MM-only

Heads up!

Break out!

About time

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Lets hope for a good update tomorrow,let the trend be your friend

StockMarketWire.com
Premier Oil achieved full year production of 75 kboepd in 2017, in line with guidance and up 5% on 2016.

Estimated total capex was US$305 million, below revised guidance of US$325 million.

Net debt dropped to US$2.7 billion as at 31 December 2017.

For 2018, the company expects production of 80-85 kboepd, allowing for the ramp up from Catcher and adjusted for 2017 disposals.

Catcher production is planned to ramp up in the first half, reaching peak gross production of 60 kbopd. It is currently producing around 20 kbopd in the ramp up phase.

Tony Durrant, chief executive, said: "First oil from Catcher and the completion of the Wytch Farm disposal completed a highly successful year for Premier which included our world class exploration success with the Zama discovery. As Catcher builds up to 60,000 bopd, 2018 will bring higher production and cashflow, continuing the debt reduction programme. Alongside this, our portfolio of future projects is being progressed for selective investment and further growth."

some tips are saying buy, but just to much debt for me, s/p @ 95p BB

http://www.malcysblog.com/

Oil price
Not much to add, the EIA stats were better than expected, a draw of 4.9m barrels v 3.4 guesses but not quite as impressive as the API numbers. Nevertheless crude is slightly better again this morning with $70 Brent within reach…
Premier Oil


A trading and operations update from Premier this morning which continues in the vein of operational excellence which has characterised the company for the last two months. The feature today is Catcher which came onstream on Dec 23rd on time and under budget and is already doing very well. Starting at 10/- b/d it is now up to 20/- b/d and speaking to TD first thing I get the impression that the first two wells are being tested at very good rates indeed. This month means testing of the facilities and of course with flaring restrictions production is held back, but by the end of January expect a significant increase, at $69.20 things are very pleasing.
Elsewhere very much as expected, Zama will be appraised this year and next and Tolmount development sanction is expected this year as well. At Sea Lion progress with contractors is gathering pace and debt is being processed, sanction here is planned by the end of this year. (See RKH below)
Financially things are of course looking up, opex this year will be $17-18, capex of $300m and with the healthy oil price and positive free cash flow, debt repayments are accelerating and the total is now , only, $2.7bn. The shares have had a great run having doubled since the summer and the slight dip this morning appears somewhat churlish by the market but I’m still very happy to keep them tucked up in the bucket list.


Rockhopper Exploration
Rockhopper has announced a corporate update, timed clearly to be in tandem with Prems as the subject is primarily Sea Lion. Phase 1 continues to move towards sanction later this year with work in the last few months concentrating on the commercial, fiscal and financing elements required to secure the $1.5bn capex ahead of first oil. LOI’s are being signed with contractors for provision of well services, logistics and vendor financing which must be good news . For both PMO and RKH the finance needs to be arranged and I understand things are progressing well on that front. Although debt providers are unsurprisingly cautious after the last few years, the project economics of Sea Lion at around $70 must provide plenty of comfort and it should get away.
Finally at Abu Sennan news on production is good and a ‘full review of its prospectivity’ indicates that there is decent upside and enough to consider further drilling this year.
Finally at Abu Sennan news on production is good and a ‘full review of its prospectivity’ indicates that there is decent upside and enough to consider further drilling this year.

More good news in my eyes

The convertible bonds are capable of being exchanged at any time and are currently trading "in-the-money". With this invitation, the Company is seeking to accelerate the exchange of the Bonds into ordinary shares, which has several advantages for the Company, its shareholders and bondholders:
· The primary purpose is to reduce the Company's indebtedness: the early exchange of the Bonds along with the recent non-core disposals of Wytch Farm, Pakistan, and its interest in the ETS pipeline and the start of production at Catcher, will assist the Company to reduce debt and to impact positively the Company's forward financial covenants;

· It will rebalance the Company's capital structure and should reduce hedging activity in the Company's ordinary shares: the Company's capital structure currently comprises shareholders' ordinary equity plus long term borrowings which include UK retail bonds, senior loan notes, bank debt and the Bonds. Accelerating the exchange of the Bonds will increase the equity base of the business whist reducing outstanding debt and associated hedging activity (short selling) by certain holders of the Bonds;

· The early exchange of any Bonds will lead to a smaller total number of ordinary shares being issued in respect of the Bonds than would be issued if all coupons were paid in ordinary shares and the Bond were held to and exchanged at maturity;

PREMIER OIL PLC
("Premier")
Catcher operational update
24 January 2018

Premier is pleased to provide the following update on its operated Catcher Area development, which was successfully brought on-stream on 23 December 2017.

The first export cargo of Catcher oil of approximately 500,000 barrels was lifted yesterday, earlier than anticipated, and has been sold at a premium to Brent. The second cargo, which is scheduled for the third week of February, has also been sold at a similar premium to Brent.

To date, four production wells - two from the Catcher field and two from the Varadero field - have been brought online. Initial rates from these four producers totalled in excess of 60 kbopd and, as planned, these wells are being deliberately constrained at an average of 20 kbopd whilst final commissioning of the gas processing modules on the FPSO is completed.

Performance of the BW Catcher FPSO has been excellent with high operational uptime. Commissioning of the water injection system has been completed. Gas commissioning is progressing well with the gas import/export pipeline now fully open to the SEGAL pipeline and booster compression test runs successfully concluded. The next stages of gas treatment and export compression commissioning will now follow with the switch to fuel gas for the main power generation and ancillary boilers set to commence this week. Once the gas systems, including gas export, are fully available, production will be brought on-stream from the Burgman field and full production from the Catcher Area is planned to increase to 60 kbopd. This remains on schedule for Q2 2018.

StockMarketWire.com
Premier Oil said the company and partners had been awarded an exploration licence off the coast of Indonesia.

The Andaman II licence is located in the under-explored but proven North Sumatra basin offshore Aceh.

Premier said it had identified numerous prospects and leads and planned to acquire 3D seismic in an initial three-year term.

'This award is in line with Premier's strategy of targeting low commitment high impact exploration in proven hydrocarbon provinces and has the potential to deliver significant organic growth opportunities for our existing Indonesian business in the longer term,' chief executive Tony Durrant said.