Premier expects Catcher oil field to come on stream this year

Nov. 17, 2017
Premier Oil PLC expects to lower its $2.8-billion debt after Catcher oil field in the North Sea comes on stream in December, executives recently said. Premier reported third-quarter earnings included $2.8 billion of debt, but analysts say the London independent oil company could reduce debt to $2.6 billion by Dec. 31.

Premier Oil PLC expects to lower its $2.8-billion debt after Catcher oil field in the North Sea comes on stream in December, executives recently said. Premier reported third-quarter earnings included $2.8 billion of debt, but analysts say the London independent oil company could reduce debt to $2.6 billion by Dec. 31.

“As long as we’re outperforming operationally, I’m happy, everybody’s happy, the banks are happy,” Premier Chief Executive Tony Durrant told Reuters.

RBC Europe Ltd. analysts noted the full hook-up process is complete for Catcher. Development drilling continues ahead of schedule with 12 wells of which 8 are production wells and 4 are injection wells.

Those dozen wells are drilled and tied back to a floating production, storage, and offloading vessel.

Premier executives say higher production will make the firm cash-flow positive in the fourth quarter and for all of 2017. Crude oil prices are offsetting Catcher’s expenses. Premier cut development, exploration, and abandonment expenditures for 2017 to $300-310 million from its initial $390-million target.

Full-year production guidance remained at 75,000-80,000 boe/d.