LONDON – Premier Oil has agreed to refinancing terms for its debts with its lenders and bondholders, allowing it to continue with its current and planned offshore E&P programs.
Of late the company’s production has averaged around 80,000 boe/d, but this should rise markedly later in the year once theCatcher field comes onstream in the UK central North Sea.
The company plans to prioritize use of the resultant cash flow to bring down its debt level.
At the same time, the company and its lenders expect it to pursue investment in unsanctioned projects, at the appropriate equity levels, taking into account the commodity price environment.
Premier holds 700 MMboe of undeveloped reserves and resources. The yet-to-be-sanctioned projects include infill drilling program and incremental developments around existing fields, and new projects such as Tolmount in the UK southern gas basin, Tuna, andSea Lion in the offshore North Falkland basin.
The company also has high hopes for its exploration acreage offshore Mexico, where drilling is slated to start in 2Q.