Premier Oil meets year-end production target

Premier Oil met its year-end production target rate of 60 thousand barrels of oil equivalents per day (kboepd) in 2011, helped by the start of of two major projects in Asia in the fourth quarter.

Production for the 12-month period average 40.4 kboepd, in line with guidance. This is expected to increase to 60-65 kboepd in 2012 with an expected year-end exit rate of 75 kboepd.

Full-year revenues are estimated to be $825m, up from $764m in 2010. However, the firm said that pre-tax profits will reflect $160m of exploration write-off and a positive adjustment of $432m in respect of its commodity hedge portfolio.

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The average oil price realised in 2011 was $111.9 a barrel, compared with just $79.7 a barrel the year before.

More to follow...