Premier Oil targets 1.1bn dollars for 2013 spend

Oil exploration and production company Premier Oil is targeting 1.1bn dollars in planned spend for 2013, up from the 730m dollars capital spending in 2012.

Oil exploration and production company Premier Oil is targeting 1.1bn dollars in planned spend for 2013, up from the 730m dollars capital spending in 2012.

In a trading and operations update published by the group on Thursday morning, the company announced plans to spend $900m on development and a further $200m on exploration pre-tax.

The group reported net debt estimated at $1.1bn as of December 31st 2012, up from the $730m reported in the previous year. Gearing is expected to be 37%.

Total revenues for 2012 are expected to be in the order of $1.4bn, up from the $826.8m reported in 2011.

Pre-tax profits for the full year 2012 are expected to reflect an estimated $160m of exploration write-offs and a positive adjustment of around $10m in respect of the group's commodity hedge portfolio.

More drilling planned for 2013Over the course of 2013, the group plans to drill at least 14 wells targeting more than 200 mmboe of net unrisked prospective resource.

CEO: 'Significant increase in production expected' in 2013Simon Lockett, Chief Executive Officer at Premier Oil, commented: "2013 will be a busy year for Premier. After an increase of 43% in 2012, a further significant increase in production is expected during 2013. We are also building increasingly material exploration programme."

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020