Premier Oil bullish as Catcher production starts to ramp up

Premier Oil issued an upbeat outlook yesterday after a strong production start from its flagship Catcher development in the North Sea.

The firm revealed last month that the first oil had begun to be pumped from the £1 billion-plus Catcher project, which lies around 110 miles off the coast of Aberdeen. It is already pumping around 20,000 barrels per day, ramping up to about 60,000 barrels in the first half of 2018.

Premier operates the Catcher area and owns a 50 per cent stake. Edinburgh-based oil explorer and producer Cairn Energy holds a 20 per cent stake.

In a trading and operations update, chief executive Tony Durrant said: “First oil from Catcher and the completion of the Wytch Farm disposal completed a highly successful year for Premier which included our world class exploration success with the Zama discovery.

“As Catcher builds up to 60,000 [barrels], 2018 will bring higher production and cashflow, continuing the debt reduction programme. Alongside this, our portfolio of future projects is being progressed for selective investment and further growth.”

Capital spending is expected to rise slightly this year to $300 million (£222m) from $280m last year, when the group trimmed its budget three times in the face of increasing debt. The firm is also preparing for the development of the Tolmount gas field. 0 The group operates the Catcher area and owns half