(Alliance News) - Premier Oil PLC on Wednesday reported double-digit growth in production in the first half of 2019 as it progresses on its worldwide exploration programmes.
The exploration and production company said output in the six months to the end of June averaged 84,000 barrels of oil equivalent per day, up 11% on the prior year. As a result, Premier said it is on track to meet its previously upgraded full-year production guidance of between 75,000 and 80,000 barrels of oil equivalent per day.
The FTSE 250-listed company explained that improvement in production was driven by an increased contribution from the Premier-operated Catcher area in central North Sea, which averaged 34,800 barrels of oil equivalent per day.
Operating costs and lease costs to the end of June averaged USD10.4 per barrel of oil equivalent and USD6.3 per barrel of oil equivalent, respectively, reflecting strong production and continued tight cost control across the company, Premier asserted.
Turning to exploration activities, Premier said drilling will commence shortly for the Tolmount East appraisal well in the UK southern North Sea, which has the potential to add significantly to the Tolmount resource.
In Mexico, the 3D seismic survey acquisition across block 30, in which Premier has a 30% stake, was completed in July. Meanwhile, Premier's exploration plan for its wholly-owned blocks 11 and 13 were approved by National Hydrocarbons Commission.
In Brazil, Premier said it is "actively" engaging rig contractors to drill its Berimbau/Maraca prospect on block 717, where it holds 50% interest, in 2020.
"We have delivered a strong first half," said Chief Executive Tony Durrant. "In addition, we have retained significant optionality with our future developments and an extremely attractive exploration portfolio which together offer substantial upside exposure."
Premier shares were trading 2.8% lower on Wednesday in London at 78.70 pence each.
