Highlights
Operational
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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 |
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Reserves and resources increased to 773 mmboe (2011: 513 mmboe), an increase of 51 per cent |
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Four development projects - Solan, Pelikan, Naga and Dua - achieved final approvals in 2012, on track for first oil/gas in 2014 |
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Significant progress made on the operated Catcher field with the development concept formally agreed in December and key contract negotiations under way |
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Successful entry into the Falkland Islands; Sea Lion development planning progressing to mid-year 2013 concept selection |
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Play-opening acreage added in Vietnam, Falklands and Iraq; group prospective resources now in excess of 2.5 bnboe (2011: 1.6 bnboe) |
Financial
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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 |
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Operating cash flow of US$808.2 million (2011: US$485.9 million), an increase of 66 per cent |
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Subject to AGM approval, initial dividend payment of 5 pence per share (2011: nil), reflecting confidence in strong rising cash flows |
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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) |
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Cash and undrawn facilities (including letters of credit) of US$1.1 billion (2011: US$1.1 billion) with extended debt maturities |
Outlook
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2013 production guidance of 65-70 kboepd re-affirmed; run rate of 75 kboepd once Huntington and Rochelle on-stream |
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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 |
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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 |
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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."
