Britain’s Premier Oil cut debt to $2.3 billion at the end of 2018, below a previous forecast of $2.4 billion, it said in a trading update on Jan. 10.
Premier’s full-year production of 80,500 barrels of oil equivalent per day (boe/d) came in slightly above its guidance and was up 7% from its 2017 output.
For this year, Premier, which has been selling producing assets, sees output at around 75,000 boe/d.
Premier estimates its revenue for last year at $1.4 billion, more than a quarter higher than in 2017 on the back of higher production as well as higher prices.
Premier has been hedging large chunks of its production, including around 36% at an average of $70 a barrel (bbl) through the year. Oil prices are currently around $60/bbl.
“On a full year basis, Premier expects to generate positive free cash flow at oil prices above $45 [a barrel] during 2019,” Premier said.
It sees operating costs to rise to around $20/bbl from $16.90 in 2018, reflecting the sale of low-cost gas producing fields.
Premier, whose bottom line still profits from tax loss allowances, is set to spend around $290 million on development and exploration, including its wells in Mexico’s Zama field.
Denbury Resources and Penn Virginia mutually agreed to terminate their merger after the $1.7 billion cash-and-stock transaction faced difficult market conditions and shareholder opposition.
Corey Code will replace Sherri Brillon as Encana’s CFO in May when she retires after an over 30-year career with the North America shale powerhouse.
Murphy Oil plans to use proceeds from its Malaysia exit to PTTEP for share buybacks as well as funding Eagle Ford Shale and U.S. Gulf of Mexico operations.