Premier Oil Plc (PMOIY.PK,PMO.L) said production averaged 58.4 kboepd in the first half of 2012.
Recent performance has been strong, averaging 61.0 kboepd in the second quarter compared to 56.1 kboepd in the first quarter. Following a review of the planned shutdowns scheduled for the third quarter of this year, full year average production is expected to be around 60 kboepd, rising to an exit rate of 75 kboepd once Huntington and Rochelle are onstream.
Looking ahead, Premier said its medium-term production target of 100 kboepd from existing projects remains on track and unchanged.
Separately, Premier Oil said it has agreed to farm-in for 60 per cent. of Rockhopper Exploration plc's (RKH.L) licence interests in the Falkland Islands, which includes the Sea Lion development. The initial payment will be $231 million in cash plus an exploration carry of up to $48 million and, subject to field development plan approval, a development carry of up to $722 million. These will be funded from a combination of Premier's existing cash resources, facilities and cash flow from operations.
Premier and Rockhopper have also agreed to pursue jointly exploration opportunities in the Falkland Islands and analogous plays in selected areas offshore Southern Africa.
Rockhopper said it will be fully funded on its share of the Sea Lion development through the development carry and standby financing arrangement provided by Premier - with the option to secure third party financing in place of the standby financing arrangement, if Rockhopper so chooses.
Rockhopper noted that the proposed acquisition is expected to complete in September 2012.
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by RTT Staff Writer
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