Premier Oil Delivers 'In Line' Production Figures for 2011
by Jon Mainwaring
Thursday, January 19, 2012
Premier Oil's production figures for 2011 were in line with the firm's own forecast, although down on the previous year's figures, it announced Thursday. Premier, whose shares are listed on the London Stock Exchange, said that average production for the year was 40,400 barrels of oil equivalent per day, compared with 42,800 boepd in 2010.
Meanwhile, a spokesman for Premier confirmed to Rigzone Thursday that the firm plans to spend approximately $800 million on development and $200 million on exploration in 2012, which would be the most the firm has spent in a single year during its entire history.
Premier said that thanks to the ramping up of production from Chim Sáo
in Vietnam and Gajah Baru
in Indonesia during December, the firm's total production for that month exceeded 60,000 boepd. Guidance from Premier for average production for this year is for between 60,000 and 65000 boepd with an expected exit rate of 75,000 boepd.
Although London-based finnCap described the production figures as "at the bottom end of guidance" (and five percent below the investment bank's own forecast), fellow London broker Oriel Securities said that Premier's trading update "confirmed a strong end to 2011".
Because of FPSO (floating production, storage and offloading vessel) damage, Oriel noted that the Kyle field in the North Sea is "likely to be out of action for the full year" but that "this should be more than offset by upside from Chim Sáo if the strong early performance continues".
Premier also reported that development drilling at the Huntington field
, in the UK zone of the North Sea, "continues to progress well". The first two producer wells, which have been drilled and tested, have exceeded expectations while the third producer well is currently drilling.
Elsewhere in the North Sea the firm is progressing with its Rochelle field
development, with subsea facilities fabrication and offshore construction on the host Scott platform
on schedule, and first gas expected in the fourth quarter of this year.
Premier is also expecting project sanction for its Fyne
field to occur in early 2012 after the East Fyne appraisal well (currently drilling) has been completed and first oil is targeted for mid-2014. Over in Norway, the firm said a "concept selection" decision for the Bream field
is expected soon, while on the Frøy
project commercial discussions are ongoing with the operator and with other field owners in the area with a view to moving the project forward.
In Asia, following the November sanctioning of the the Anoa Phase 4 project in Indonesia, Premier expects to complete the project during 2013 and develop around 200 billion cubic feet of proven reserves. Project sanction for the Pelikan and Naga fields is planned for the end of 1Q 2012, while elsewhere in Indonesia the operator of Block A Aceh (in which Premier has a 41.67 percent interest) is targeting project sanction in the first half of this year.
In Vietnam, Premier is currently purchasing long-lead items for the Dua development project, which is a tie-in to the Chim Sáo field. First oil here is anticipated in 2014.
As far as exploration and appraisal is concerned, Premier is planning 20 wells for the next 12 months with an un-risked net prospective resource potential in excess of 200 million barrels of oil equivalent (on a P50 basis).
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