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Premier Oil

May 2018

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.

Having spiked to 103p the shares re-traced with the culprit being results showing a larger than expected loss of US$254m relating mainly to a US$252m non-cash impairment on its Solan field, where production was lower than expected due to poor reservoir performance. There was also a gain of US$129m from the Wytch Farm disposal. Finance charges of US$329m (7.3% cost of US$3bn bank funds drawn plus US$86m fees) further weigh, but Premier still generated US$71m free cash flow, reducing net debt to US$2.7bn.Premier’s proven and probable reserves fell 15% to 302m barrels due to Solan (minus 12.4m barrels) and Wych Farm (minus 11.7m barrels), but Premier has a strong chance to make it back and more as its Mexican discovery, Zama, tr ...

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Hill & Smith - Beats forecasts

NMC Health - Berenberg has £40 price target

Premier Oil - Shares hit by Saudi price war (April 2020)

Premier Oil - Transformational acquisitions will add US$1bn free cash flow by 2023 (February 2020)

Premier Oil - Disposal of Zama one step closer (December 2019)

Premier Oil (November 2019)

Premier Oil - Proposed Zama sale will transform financial health (October 2019)

Premier Oil - Jefferies thinks Zama discovery could attract bidder (August 2019)

Premier Oil (June 2019)

Premier Oil - Record production could drive re-rating (April 2019)

Premier Oil (March 2019)

Premier Oil - Proposed take-over of Zama partner puts Premier into play™ (January 2019)

Premier Oil - CFO highlights multiple catalysts that could deliver re-rating (October 2018)

Premier Oil (September 2018)

Premier Oil (July 2018)

Premier Oil (March 2018)

Premier Oil - Jefferies upside scenario target price: £2 (February 2018)

Premier Oil - After a two year wait everything is coming together (January 2018)

Premier Oil - Asset disposal yields strong gain (November 2017)

Premier Oil (September 2017)

Premier Oil (August 2017)

Premier Oil - Refinancing a done deal (May 2017)

Premier Oil - Refinancing nearly complete (February 2017)

Premier Oil - OPEC cuts are a game changer (January 2017)

Premier Oil - Solan first oil boosts output (November 2016)

Premier Oil (September 2016)

Premier Oil - Oil recovery allows increased hedging (July 2016)

Premier Oil - Rising oil price boosts shares (April 2016)

Premier Oil - JPâ€ˆMorgan Cazenove introduces 60p price target (March 2016)

Premier Oil (February 2016)

Premier Oil - Production forecast to grow from 55,000 to 80,000 boepd by 2018 (December 2015)

Premier Oil - Our top E&P pick to benefit from oil price recovery (November 2015)

Premier Oil - Growing number of high impact wells (December 2005)

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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Premier Oil

May 2018

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