27 August - Half-Yearly Results for the six months to 30 June 2009

To view the full statement, please download the .pdf

Highlights

  • Production of 39,700 boepd up 4 per cent on first half 2008 (38,000 boepd)
  • Completed acquisitions of Oilexco North Sea (UK) in May and Delek (Vietnam) in July for aggregate consideration of US$572.7 million
  • Pro forma reserves and resources increased 17 per cent to 265 mmboe and 181 mmboe at half year
  • Exploration successes in Vietnam and Norway with follow-up planned in the second half of 2009 and 2010
  • Operating cash flow of US$113.4 million (2008: US$191.1 million) and post-tax profits of US$26.9 million (2008: US$71.2 million) reflecting lower first half commodity prices

Outlook

  • Full year production for 2009 expected to be around 46,000 boepd including contribution from the Shelley field, on-stream 6 August.  On track to reach our enhanced medium-term target of 75,000 boepd from existing projects
  • Asian development projects progressing well on revised lower cost estimates
  • Material second half exploration programme planned in Vietnam and Norway
  • Portfolio management continues with announced disposal of our Egyptian asset for US$12.5 million
  • Cash resources and undrawn bank facilities of around US$500 million available at 30 June which, together with cash flows, fully fund forward development spend with flexibility for other opportunities

Simon Lockett, Chief Executive, commented:

“Premier moved quickly this year to take advantage of good quality acquisition opportunities which arose earlier in the year at a time of weakness in oil prices and shortages of available funding.  As a result, the company has entered an exciting stage of its strategic development with increased production, reserves and operatorship capability across a more geographically balanced portfolio.  Over the next twelve months, we expect to deliver optimal outcomes for our Asian development projects and look forward to further exploration successes in Vietnam and Norway.”

27 August 2009

Enquiries
Premier Oil plc    Tel: 020 7730 1111
Simon Lockett
Tony Durrant

Pelham PR
James Henderson    Tel: 020 7337 1501 / 07774 444 163
Gavin Davis     Tel: 020 7337 1515 / 07910 104 660
Evgeniy Chuikov     Tel: 020 7337 1513 / 07894 608 606

There will be an analyst presentation at the company’s offices at 10:30am today which will be webcast live.  Please click here to register and access the webcast.

Following changes in the UK company disclosure regulations last year, it is not a requirement for half-yearly financial statements to be sent to shareholders.  Accordingly, Premier will not be printing and distributing a 2009 Half-Yearly Report.  A copy of this announcement is available for download from our website at www.premier-oil.com and hard copies can be requested by contacting the company (email: premier@premier-oil.com or telephone:  +44 (0)20 7730 1111).