Offshore UK Catcher Development to Hit 60,000 Bpd Target Ahead of Plan
In its latest results update on Thursday, Premier Oil revealed that the Catcher development, located offshore UK, is expected to reach an output rate of 60,000 barrels of oil per day (bopd) ahead of plan.
Following initial projections that the production milestone would be reached by the first half of 2018, the company now anticipates that this output figure will be hit in April.
First oil at Catcher was achieved in December 2017, on schedule and under budget. During January this year, the project was producing at around 20,000 bopd, which analysts at investment banking firm Jefferies noted was ‘double the guided expectation’ at that point.
Premier recorded production of 75,000 barrels of oil equivalent per day (boepd) in 2017, which was slightly higher than its 2016 output of 71,400 boepd. The company reported cash flows $496 million from operations during the year, which was up 15 percent on 2016, as well as a positive free cash flow of $71.2 million and a reduction of net debt to $2.7 billion. EBITDAX also increased to $589.7 million in 2017, up from $494.1 million in 2016.
In a brief research note sent to Rigzone, oil and gas analysts at GMP FirstEnergy described Premier Oil’s latest update as ‘positive’, stating that the company’s financials were ‘in line’.
“2017 was a successful year for Premier,” Tony Durrant, Premier Oil chief executive, said in a company statement.
“2018 will see further production growth, allowing us to deliver on our plans for reducing net debt to restore balance sheet strength while also progressing projects that deliver the highest financial returns,” he added.
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