Premier Oil: Catcher pays itself back less than 2 years after first oil

British oil firm Premier Oil has said that its Catcher project offshore the UK has recently achieved cash payback – meaning it has offset the initial capital expenditure costs – 22 months after first oil.

In its trading update for the 10 months to October 31, 2019, Premier said its production for the period averaged 79.4 kboepd thousand barrels of oil equivalent per day, up from last year’s 77,7 kboepd.

The Catcher Area in the North Sea with rates of 69 kboepd (gross) is a significant contributor to Premier’s production numbers.

Net to Premier Oil’s 50 percent interest, the Catcher production averaged 34.5 kboepd, boosting Premier’s UK production to 55.3 kboepd, a 27 per cent increase on the prior corresponding period.

“This continued outperformance [of the Catcher Aea] resulted in the Group achieving cash payback on the Catcher Area project at the end of October, 22 months after first oil.”

The Catcher development, made up of several fields discovered between 2010 and 2013, is located 170 kilometers south-east of Aberdeen.

The company is also working on the two Catcher Area satellite developments, Catcher North and Laverda, which were formally approved in September.

The Gorilla VI jack-up rig will drill the two development wells mid-2020 immediately after a Varadero infill well. First oil from Catcher North and Laverda is targeted for early 2021 and, together with the Varadero infill well, will extend plateau oil production across the Catcher FPSO.

Premier Oil expects its full-year production to be at the upper end of 75-80 kboepd guidance.

Offshore Energy Today Staff

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