Premier provides the following trading update for the period 1 January to 31 October 2015.
•Production averaged 57.5 kboepd year to date; ahead of full year guidance of 55 kboepd
•Solan on track for first oil before the year end, subject to weather
•The Catcher project remains on schedule and on budget; successful 2015 subsea programme completed; initial development drilling results encouraging
•Pre-FEED work on Sea Lion complete, world class preferred contractors selected
•Cost reductions of over 25% delivered for 2015 in operating costs and G&A spend; further cuts forecast for 2016
•Significant liquidity with cash and undrawn bank facilities of $1.2 billion; year-end covenant headroom forecast to be in excess of $700 million
Tony Durrant, Chief Executive, commented,'Premier continues to benefit from stable production and valuable hedging contracts. Commissioning on the Solan project progressed well during good autumn weather and the field remains on track for first oil by year-end. The Catcher project is on schedule and on budget. Looking ahead, we see reduced capital expenditure and significant cost reductions for both our current and future projects to mitigate the current oil price environment.'