Strong oil production fuels profit rise at Premier Oil

Independent upstream company Premier Oil has reported a 47 per cent rise in its profit after tax for the year ended December 31st.

In the company's annual results for the year, it reported record profit after tax of $252m compared to $171.2m in the preceding year.

Operating cash flow jumped 66% year-on-year to of $808.2m and an initial dividend payment of five pence per share was posted subject to AGM approval.

In 2012, production of 57.7 thousand barrels of oil equivalent per day (kboepd) was generated, representing an increase of 43% year-on-year.

The group said that the Huntington field was expected to be on-stream at the end of the month and reserves and resources increased to 773m barrels of oil equivalent (mmboe), an increase of 51% on the previous year.

The Solan, Pelikan, Naga and Dua development projects achieved final approvals in 2012 and Premier Oil said they were on track for first oil or gas in 2014.

Simon Lockett, Chief Executive Officer of Premier Oil, said: "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."

Premier Oil's share price was up 2.24% to 396.70p at 08:54 on Thursday.

MF