Premier Oil declares first dividend since 1998

DividendMax Ltd.

Premier Oil declares first dividend since 1998




2012 production of 57.7 kboepd (2011: 40.4 kboepd), an increase of 43 per cent; Huntington field expected on-stream at the end of the month


Reserves and resources increased to 773 mmboe (2011: 513 mmboe), an increase of 51 per cent


Four development projects - Solan, Pelikan, Naga and Dua - achieved final approvals in 2012, on track for first oil/gas in 2014


Significant progress made on the operated Catcher field with the development concept formally agreed in December and key contract negotiations under way


Successful entry into the Falkland Islands; Sea Lion development planning progressing to mid-year 2013 concept selection


Play-opening acreage added in Vietnam, Falklands and Iraq; group prospective resources now in excess of 2.5 bnboe (2011: 1.6 bnboe)




For the fifth successive year, record profit after tax of US$252.0 million (2011: US$171.2 million), an increase of 47 per cent


Operating cash flow of US$808.2 million (2011: US$485.9 million), an increase of 66 per cent


Subject to AGM approval, initial dividend payment of 5 pence per share (2011: nil), reflecting confidence in strong rising cash flows


Year-end net debt of US$1,110.4 million (2011: US$744.0 million) with stable gearing of 36 per cent (2011: 36 per cent)


Cash and undrawn facilities (including letters of credit) of US$1.1 billion (2011: US$1.1 billion) with extended debt maturities



2013 production guidance of 65-70 kboepd re-affirmed; run rate of 75 kboepd once Huntington and Rochelle on-stream


Key project milestones expected in 2013, including completion of the first phase of Solan development drilling, final sanction of the Catcher project and concept selection for the Sea Lion project


15 firm exploration and appraisal wells planned for 2013; five high impact wells targeting in excess of 150 mmboe, including Luno II (spudded); Matang and Bonneville well results expected imminently


Maturing play-opening prospects in Kenya, Norway, the Falkland Islands and Iraq for 2014/15 drilling

Simon Lockett (Chief Executive), commented:

"Premier has built a strong asset portfolio which will act as a springboard for significant further growth over the medium-term. We have a number of development projects coming on-stream in the short-term, an exploration portfolio with increasing materiality and another key leg to our business as a result of our entry into the Falkland Islands.

Over the last seven years, our team has transformed the size and profitability of our business; the strategy we put in place in 2005 has delivered this growth. The next three years will see a further transformation of the business as we increase production and generate significantly greater cash flows."

Companies mentioned