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Premier Oil

September 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PMO
  • Price:
  • 80.75p
Premier has recorded H1 production of 84.1kboed, +5% over estimates (+15% year-on-year) causing brokers to lift FY19 production estimates. This has been driven by the continued strong performance of the UK Catcher field at 69.4kboed gross in H1 including 99% FPSO operating efficiency. Also, mature UK fields such as Huntington continue to outperform. Premier plans three additional Catcher wells in 2020, which will help maintain oil production but the company clarified to us that they expect Catcher can maintain production levels through to end-2020 even without the new wells. The lightening rod is also confirmation of deleverage -  free cash flow was US$180m in H1 (US$300m forecast for year at US$65/b of oil) and will leave year end ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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