Premier Oil sticks to current production guidance

Premier Oil, the British explorer and producer, yesterday maintained its production guidance and said a bank refinancing had increased its facilities by $470m (£295m).

The firm, which has assets in the North Sea, Congo, Indonesia, Vietnam and Pakistan, said it was forecasting production at around 44,000 barrels of oil equivalent (boe) in 2010. Premier reiterated its targets of 75,000 boe/d in 2012 rising thereafter to 100,000 boe/d from existing reserves and resources.

The firm reported good progress on its key Asian developments, with facilities in place on both the Chim Sao and Gajah Baru projects and development drilling under way.

It is also making progress on completing commercial agreements for the Huntington project in the UK and in North Sumatra.
Premier also noted a gas and condensate discovery at West Rochelle. It said 23 wells were planned over the next 13 months with unrisked potential of around 400m boe.

The firm added that the bank refinancing, which took total facilities to $1.8bn, was achieved at a significantly reduced margin.