Premier Oil Announces 2003 Results

Premier Oil highlights preliminary result from the year ended December 31, 2003. Financials

  • Profit after tax and exceptional charges up 80% at £40.8 million (2002: £22.6 million)
  • Net cash inflow of £255.2 million* (2002: £93.2 million)
  • Nil gearing at year-end
  • Strong forward cash flow with most of the booked reserves sold under long-term gas contracts
  • Production of 36,000 boepd in first two months of 2004

  • Operational achievements

  • Deal with Fusion built Premier's West African position, generated significant value and exploration success with Chinguetti and Tiof discoveries in Mauritania
  • Successful exploration in Pakistan
  • Non-core asset disposals realized cash of £18.2 million (2002: £23.4 million)
  • Total reserves, including discoveries awaiting commercialization, in excess of 200 mmboe
  • Replenished exploration portfolio during the year with 18 well 2004 drilling program in place - 9 wells in Mauritania and further wells in Gabon, Guinea Bissau, Pakistan, India, Indonesia and the UK

  • Sir David John, Chairman, commented:

    '2003 was a year of transformation for Premier. Record levels of production and profit, and a strong balance sheet, were complemented by exploration success and the completion of the corporate restructuring.

    New Premier has emerged as a strong operational and financial business generating healthy cash flow to pursue exploration and commercial opportunities.

    Premier is in good shape and we intend to keep it that way.'