Premier Oil’s shares plunge on disappointing output forecast

Suzie Neuwirth
FTSE 250-listed Premier Oil’s 2014 production guidance missed expectations yesterday, sending shares down over six per cent.

The oil explorer, which has assets in the UK North Sea, the Falklands and Asia, said production in 2013 was around 58,200 barrels of oil per day (bopd). It expects to produce 58,000 to 63,000 bopd in 2014, despite its oil fields being capable of producing over 75,000 bopd.

Canaccord Genuity had forecast production to hit 69,600 bopd in 2014, 15 per cent ahead of the mid-point of Premier’s guidance.

“2013 was a challenging year for Premier and the wider industry as a whole,” said chief executive Simon Lockett.“It is however pleasing that production reached record levels towards the end of the year.” Shares closed at 288p.