Saudi Arabia's oil minister said on Monday that oil producers would "do whatever it takes" to rebalance the market and that he expected a global deal on cutting crude output to be extended to the end of 2017 or possibly longer.
UPDATE 1-Premier Oil sees big debt cuts in 2018 with higher output Mon, 15th May 2017 10:28
By Ron Bousso and Sanjeeban Sarkar
May 15 (Reuters) - North Sea focused Premier Oil expects to slash its $2.8 billion debt pile significantly in 2018 by exceeding its 2017 production target and lowering spending, it said on Monday.
The oil and natural gas producer's shares rose 3.4 percent by 0925 GMT after it also formally kicked off a debt refinancing deal and set a date for a shareholders meeting for its approval. It did not say by how much it would reduce the debt, which it has struggled to contain.
"A positive statement from Premier demonstrating good momentum in the business now that the refinancing looks out of the way," BMO Capital Markets analyst David Round said.
Premier Oil production continues to surge Mon, 15th May 2017 10:53
(ShareCast News) - Premier Oil produced more oil and at a lower cost than expected in the first four months of the year and as its new Catcher project in the North Sea comes on stream, plans to be cash flow positive for the year.
Production averaged 82.6k barrels of oil equivalant per day (boepd), up 44% on the same period last year.
Premier is pleased to announce that the Zama-1 exploration well in Block 7 (Premier equity 25 per cent) in the shallow water Sureste Basin, offshore Mexico, was spudded at 0630 on 21 May 2017. This is the first exploration well to be drilled on acreage awarded in Mexico?s first international licencing round in 2015.
The well?s principal target is the low risk Zama prospect with supportive direct hydrocarbon indicators in the Tertiary clastic reservoirs. The Zama structure is estimated to have a P90-P10 gross unrisked resource range of 100-500 mmbbls. The well is expected to take up to 90 days to drill both the Zama prospect and the secondary target, Zama Deep, at a total cost to Premier of $16 million.
The partners in Block 7 are Talos Energy (operator, 35 per cent), Sierra Oil and Gas (40 per cent) and Premier (25 per cent).
?Premier continues to deliver excellent operational performance, which will drive free cash flow and the reduction of net debt. The first half saw good progress on the Catcher and Tolmount projects, a world class exploration success in Mexico and the acceleration of cash flow from disposals. Following the successful completion of our refinancing, we are ahead of plans to restore financial strength while progressing a number of exciting projects for future growth.?
Operational highlights Record production of 82.1 kboepd, an increase of 34.5% on the prior period (1H 2016: 61.0 kboepd) Catcher FPSO sailaway to North Sea imminent; positive development drilling results Heads of Terms signed for new Infrastructure partnership for Tolmount project World class Zama oil discovery, offshore Mexico Disposal programme ongoing, including potential sale of interest in Wytch Farm field for US$200 million
Financial highlights Cash flows from operations of US$292.0 million (1H 2016: US$108.7 million), up 168% on prior period Opex of US$14.7/boe, down 11% on the prior period Positive free cash flow in 1H, reducing net debt to US$2.7 billion Profit after tax of US$40.7 million (1H 2016: US$167.1 million including one-off non-cash credits) Comprehensive refinancing completed
Outlook 2017 production guidance increased to 75-80 kboepd, from 75 kboepd 2017 opex guidance of <US$16/boe maintained, capex guidance recently lowered to US$325 million Catcher on schedule for 2017 first oil; improved field production profile now anticipated Further debt reduction forecast at year end at current oil prices including effects of ongoing planned disposals Debt reduction accelerating once Catcher on-stream; targeting leverage ratio of 3x EBITDA by end 2018
: Jefferies upgrades Premier on new oil forecasts
Tue, 29th Aug 2017 09:42
(ShareCast News) - Jefferies took a lathe to its target prices for most oil companies on Tuesday, including downgrading EnQuest and Tullow Oil, but kept a host of 'buy' ratings for growth stories such as Cairn Energy, Faroe Petroleum and newly upgraded Premier Oil.
The bank's average Brent crude oil price calculations were cut to $52 per barrel for 2017, from $55; to $57 for 2018 from $64; to $60 for 2019 from $67; to $65 from $70 for 2020; and to $65 from $70 for the "long term".
While analysts estimate that a "very modest under-supply" will persist through into 2018, inventories are unlikely to return to the five-year average levels "any time soon" -- and an expiration of OPEC's production cuts looms in a "slow" market.
"While the market appears to be more than adequately supplied in the near term, we do expect that depleting proved developed reserves, and (eventually) shrinking spare capacity, support our rising longer-term price assumption."
Reviewing the international exploration and production stocks under their coverage, analysts said NAVs were reduced by 15% on average based on the long term price, with Lundin Petroleum and Aker BP maintained as 'anchor' recommendations on the Norway story, but Premier Oil upgraded to 'buy' from 'hold' as its improvement in fortunes is seen as accelerating, with a 32% increase in the target price to 90p per share.
"We are more confident in Premier's ability to move its growth projects forward and de-lever the balance sheet. The crucial contrast here to other levered UK peers is that PMO's debt refinancing, while protracted and dilutive during the process, is now complete. Secondly, Catcher field ramp-up is ahead as a catalyst and the Mexico Zama discovery appears simply world class at ~600mmb of oil after just one well."
As for the majors, after the revision of the Brent price deck, Jefferies continues to prioritise those stocks offering the highest 2018 expected free cash flow yields (OMV and Royal Dutch Shell) as well as the stocks offering the greatest swing in FCF generation over the coming 12-18 months (Eni, Chevron and Conoco), while the least preferred remain Statoil and Repsol where analysts expect FCF yields to compress the most in 2018 relative to 2017.
Für meinen Teil bin ich seit Q1 2016 dabei, leider ist mir dann der Brexit reingerauscht hatte ich so nicht erwartet. Musste halt jetzt ein wenig länger warten für mein Ziel Szenario. Wenn die Daten weite so laufen sollten könnten die 1,30 bis 1,35 in den nächste 3-4 Monaten Realistisch werden. Förderung ist ja rauf und die Kosten runter sollte jetzt mit der Brent Oil Entwicklung daher gehen und leicht aufholen
Ich kann den kontinuirlichen Anstieg der letzten Tage schon gar nicht glauben. Bin seit über 3 Jahren investiert zu einem Kurs von 1,80 €. Zwischenzeitlich war ich über 70% im Minus. Ohne Zweifel muss Öl weiter rauf (wird schwierig), sonst bricht Premier Oil sofort wieder ein.
interactive investor oder London Southeast (www.lse.co.uk). Auf diesen beiden Seiten ist PMO ein großes Thema, teilweise mit bis zu 100 Blog-Einträgen täglich - viel Mist aber auch fundierte Informationen. A. Durrant hat sich z.B. in der Richtung geäußert, dass PMO zunehmend wieder in das Gesichtsfeld verschiedener Fonds fällt, zudem steht die Aufnahme von PMO in den FTSE 250 unmittelbar bevor, dazu noch die von A.D. geäußerte Meinung, dass in der zweiten Jahreshälfte (hoher Ölpreis vorausgesetzt) mit einem, von der Anlegern ersehnten, Schuldenabbau begonnen werde. Hinzu kommt noch die immer wieder aufkeimende Hoffnung auf eine Übernahme. All dies ergibt einen Mix, der den Kurs steigen läßt. Bin persönlich seit vielen Jahren in PMO investiert, habe am Anfang sehr viel Geld mit PMO verloren, konnte es aber durch intensives Traden über die letzten Jahre wieder reinholen und bin nun seit Herbst vorigen Jahres ununterbrochen investiert und werde es auch noch lange bleiben, da ich der festen Überzeugung bin, dass der Anstieg gerade erst beginnt. Wir werden noch viel Freude an diesem Öi- und Explorationswert haben. Jedenfalls ist dies meine Überzeugung. Schöne Pfingsten
Production averaged 57.5 kboepd year to date (https://smartrain.vn/); ahead of full year guidance of 55 kboepd Solan on track for first oil before the year end, subject to weather The Catcher project remains on schedule and on budget; successful 2015 subsea programme completed; initial development drilling results encouraging Pre-FEED work on Sea Lion complete, world class preferred contractors selected Cost reductions of over 25% delivered for 2015 in operating costs and G&A spend; further cuts forecast for 2016 Significant liquidity with cash and undrawn bank facilities of $1.2 billion; year-end covenant headroom forecast to be in excess of $700 million