Premier Spotlights 2010 Results

Premier reported its annual results for the year ended December 31, 2010. Premier's strategy is to add significant value for shareholders through exploration and appraisal success, astute commercial deals and optimal asset management.


  • Operational
    • 2010 production of 42.8 kboepd (2009: 44.2 kboepd); on target for 75 kboepd in 2012
    • Material progress on operated Chim Sáo and Gajah Baru fields, due on-stream in 2011; Huntington on track with first oil and gas expected within 12 months
    • Portfolio of development projects approaching project sanction which will contribute towards production of around 100 kboepd by 2014
    • Eight out of 14 exploration and appraisal wells drilled in 2010 were successful, including the discoveries in the Catcher area in the UK
    • Proven and probable reserves increased to 261 mmboe (2009: 255 mmboe), a reserve replacement ratio of 138 percent. Reserves and resources increased to 488 mmboe (2009: 468 mmboe)
  • Financial
    • Record profit after tax of US $129.8 million (2009: US $113.0 million)
    • Operating cash flow of US $436.0 million (2009: US $347.7 million), an increase of 25 percent
    • US $1,100 million of UK tax allowances mitigating impact of proposed UK tax changes
    • Rising cash flows and increased funding in place to cover ongoing development and growing exploration program. Debt facilities expanded and maturities extended
    • Net debt was US $405.7 million (2009: US $315.6 million), representing gearing of 36 per cent. Cash and undrawn bank facilities (including letter of credit facilities) of US $1,202 million at year-end (2009: US $649 million)
  • Outlook
    • New projects on-stream will push first quarter 2012 production run-rate to around 75 kboepd
    • Development drilling on Gajah Baru successfully completed during the first quarter, Chim Sáo development drilling continues well and Huntington development drilling program will commence in the second quarter
    • Final development sanction for several projects expected during the year. Agreement reached to acquire a 60 per cent interest in the Solan field
    • Pre-development planning for the Catcher area under way to follow successful completion of exploration program
    • Planned 20 exploration wells in 2011 program targeting 400 mmboe of unrisked potential; encouraging start with first quarter 2011 wells; currently drilling in the UK, Egypt and Vietnam

Simon Lockett, Chief Executive, commented, "2010 was an excellent year for the group with exploration success and development project progress. We have added significant value for our shareholders and are on track to meet our ambitious production growth targets. 2011 has already built on progress made with development drilling complete, further exploration successes and new licenses awarded across our three regional businesses".