Premier Oil : Half-Year Results for the six months to 30 June 2019

Tony Durrant, Chief Executive, commented:
'I am pleased to report another strong performance for Premier where we have exceeded our financial and operational targets for the period. The Company's strong cash flow is driving debt reduction and the Zama divestment and Sea Lion farm-down processes are targeting further strengthening of the balance sheet, which remains the Group's highest priority. Premier's operated Tolmount gas project, due on-stream next year, and the addition of good quality exploration and appraisal acreage offer significant low cost opportunities for future value growth.'

Operational highlights

• Production of 84.1 kboepd (2018 1H: 76.2 kboepd), a record for 1H
• Catcher Area high plateau rates of 70 kboepd (gross) maintained, operating efficiency of 99%
• Tolmount project on schedule and under budget
• Zama gross resource upgraded to 810 mmboe (P50) following successful appraisal
• Attractive acreage captured: Andaman Sea position increased, entry into a high-impact appraisal project in Alaska
• Climate Change Committee established; review of all operations to reduce emissions initiated

Financial highlights

• Profit after tax of US$121 million (2018 1H: US$98 million)
• EBITDAX of US$680 million (2018 1H: US$488 million, adjusted for impact of IFRS 16)
• Opex of US$10/boe plus lease costs of US$6/boe
• Cash margins 35% higher than 2018 1H
• Free cash flow of US$182 million (2018 1H: US$90 million cash outflow)
• Net debt reduced to US$2.15 billion (31 December 2018: US$2.33 billion)

2019 Outlook

• Production (75-80 kboepd) and expenditure (US$12/boe opex, US$340 million capex) guidance unchanged
• Over 40% of 2019 2H oil production hedged at US$69/bbl
• First gas from Bison, Iguana and Gajah-Puteri (BIG-P) gas fields expected end Q4
• Tolmount East appraisal well results due early Q4
• Sea Lion Phase 1: discussions with senior lenders progressing, farm down process launched
• Formal Zama sale process initiated
• Forecast full year net debt reduction of over US$300 million reiterated (excluding any potential disposal proceeds)

Enquiries

Premier Oil plc
Tony Durrant, Chief Executive
Richard Rose, Finance Director
Tel: [phone]

Camarco
Billy Clegg
James Crothers
Tel: [phone]

A presentation to analysts will be held at 9.30am today at the offices of Premier Oil, 23 Lower Belgrave Street, London SW1W 0NR and will be webcast live on the Company's website at www.premier-oil.com. A copy of this announcement is available for download from Premier's website at www.premier-oil.com.

To view the full statement, please click the link below:
Half-Year Results for the six months to 30 June 2019 (431KB PDF)