Following ‘first oil’ in late December, Premier Oil PLC’s (LON:PMO) Catcher field is yielding around 20,000 barrels of oil per day and is ramping up to a target rate of 60,000 bopd in the first half of this year.
Premier Oil confirmed that its full year production measured 75,000 barrels oil equivalent per day, which was up 5% from last year and was in line with guidance.
Revenue for the year is anticipated at around US$1.09bn, up from US$983mln in the preceding year.
Guidance for the new year is now set between 80,000 to 85,000 boepd, with the range allowing for the Catcher ramp-up and the anticipated asset disposals that were agreed in 2017.
"First oil from Catcher and the completion of the Wytch Farm disposal completed a highly successful year for Premier which included our world class exploration success with the Zama discovery,” said Tony Durrant, Premier Oil chief executive.
“As Catcher builds up to 60,000 bopd, 2018 will bring higher production and cashflow, continuing the debt reduction programme.
“Alongside this, our portfolio of future projects is being progressed for selective investment and further growth."
Premier also updated investors on its key development projects. Notably, the company said it expects to sanction the Tolmount field development during the year.
The company added that commercial and financial work streams are underway for the Sea Lion field in the Falklands.
It noted that the final draft of the field development plan for the project in November, and it is expected that a public consultation for the environmental impact statement is due to start shortly. Meanwhile, talks are underway with potential contractors for a range of services.
Elsewhere, in Mexico, the new Zama discovery is due to be appraised during the 2018/19 season.
Premier told investors that development and exploration capex is anticipated to be around US$300mln. Opex is pitched between US$17 to US$18 per barrel.
It is expected that debt reduction will accelerate as production from Catcher ramps up. At the end of December, net debt amounted to US$2.7bn.