LONDON (dpa-AFX) - Premier Oil plc. (PMO.L, PMOIY.PK), in its trading update in light of the current market volatility, said that its assets continue to perform well with production to the end of February of 76.6 kboepd. It reiterated full year production guidance of 70-75 kboepd, before the impact of the proposed UK acquisitions.
Premier's 2020 cash flow breakeven price is under $50/bbl and a $5/bbl move in the oil price point forward is expected to result in a $50 million move in free cash flow on a full year basis.
The company noted that the discussions are already underway regarding the Group's ability to reduce its 2020 capex programme. Initial analysis suggests that at least $100 million of savings and deferrals is achievable with potential for further reductions. Assuming a $100 million reduction in planned 2020 capex and $35/bbl oil price for the remainder of the year, the Group would expect to be broadly cash flow neutral in 2020.
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