Premier Oil plc has lowered its full-year production guidance following problems in its biggest producer, the operated Catcher oil field in the UK central North Sea.
OPERATIONS
The company posted production figures of an average 62.5 thousand barrels of oil equivalent for 10 months to 31 October 2020.
Guidance has been revised from previous forecasts of 65-70 kboepd to 61,000-64,000 barrels per day.
Premier ended the period with net debt of $2.05 billion.
The produced water plant was offline to remove a build-up of calcium naphthenate, leading to a shutdown from August to early November, which resulted in the Catcher Area averaging 26.5 kboepd.
A fire on 9 November in the main store room of the FPFO caused further hindrances. Operator BWO aims to repair the affected electrical equipment “within the next week”.
Premier added that the third producer, Solan P3, was brought on-stream in September with well free-flows of up to 9.5 kbopd expected to exceed 10 kbopd.
The Elgin Franklin area produced 6.8 kboepd while an active rig programme with the F13 well was brought on-stream in October.
In Indonesia, a farm-out agreement was signed in September with Zarubezhneft for Tuna, leaving Premier fully carried for a two-well appraisal programme planned for 2021.
Meanwhile, production from Premier’s operated Natuna Sea Block A fields averaged 12.2 kboepd.
In Vietnam, Premier’s operated Chim Sao field produced 8.7 kboepd, while the company also looked to options for “significant” growth at the Zama field in Mexico.
DEVELOPMENT
Development projects included installation of a platform in Tolmount and the start of drilling four development wells, with first gas targeted for Q2 2021.
In September, Premier was awarded two licences adjacent to its Tolmount field development area and is “maturing a number of leads and prospects”.
In the North Falkland Basin, the 250 million barrels of oil Sea Lion phase 1 project is on hold while Premier works with the Falkland Islands Government (FIG) on licensing, fiscal and regulatory matters.
The company also plans to drill in 2022 the stacked Berimbau/Maraca prospect on its operated Block 717 in Brazil.
COMPANY MOVES
Premier’s proposed merger with Chrysaor to create the largest London listed independent oil and gas company, will result in management changes
Chief executive officer Tony Durrant will step down by the end of the year, while finance director Richard Rose will stand in until the deal completes.
Chief operating officer Stuart Wheaton will become interim deputy chief executive officer.