Tony Durrant, Chief Executive, commented:
"Delivery of a step change in production levels and a leaner operating cost base has addressed the lower commodity price environment. Full year production guidance is now increased, which will drive free cash flow generation. We have made substantial progress with our lending group on the principal terms of a refinancing. Our project portfolio has been expanded, positioning Premier for future growth at lower cost."
Entering new phase
Moving to positive cash flow following a period of substantial investment
E.On UK acquisition brings portfolio and financial benefits
Full year production guidance raised to 68-73 kboepd
Cost base reset
Progress being made with lending group to amend financial covenants and to revise debt maturities
Strong operational performance
Production averaged 61.0 kboepd (2015 H1: 60.4 kboepd)
93 per cent production efficiency
Recent record production rates above 95 kboepd
Solan on-stream
Solid financial performance
Profit after tax of US$167.1 million, including E.On negative goodwill credit of US$106.9 million (2015 H1: loss of US$375.2 million)
Operating cash flow of US$108.7 million (2015 H1: US$513.0 million)
H1 operating costs of US$16.5/boe, 14 per cent below budget
Weaker sterling exchange rate positively impacts forward opex, capex and debt
Net debt slightly lower on end Q1 position at US$2.63 billion (31 December 2015: US$2.2 billion)
Future growth
Catcher on schedule for 2017 first oil, capex 20 per cent lower than at sanction
High return infill drilling in UK and Asia
New development projects benefitting from improved economics
Exploration prospects in Mexico, Brazil and UK Southern Gas Basin
