May 13, 2020 / 6:36 AM / 12 days ago

BRIEF-Premier Oil Says It Expects To Be Cash Flow Neutral In 2020

May 13 (Reuters) - Premier Oil PLC:

* TRADING AND OPERATIONS UPDATE

* 30% OF 2020 VOLUMES HEDGED AT $60/BOE INCLUDING C.50% OF Q2 OIL PRODUCTION AT $64/BBL

* ESTIMATED $240 MILLION OF CAPEX AND OPEX SAVINGS AND DEFERRALS SECURED

* FORECAST BROADLY FREE CASH FLOW NEUTRAL FOR FULL YEAR 2020 AT CURRENT FORWARD CURVE

* NET DEBT REDUCED TO $1.91 BILLION AS AT END OF APRIL (31 DECEMBER 2019: $1.99 BILLION)

* PRODUCTION AVERAGED 70.1 KBOEPD TO END OF APRIL, IMPACTED BY A RECENT UNPLANNED CATCHER OUTAGE

* 2020 GUIDANCE REVISED TO 65-70 KBOEPD

* TOLMOUNT SCHEDULE IMPACTED BY COVID-19 WITH FIRST GAS NOW EXPECTED IN Q2 2021

* TOLMOUNT EAST (PREMIER-OPERATED) ON TRACK FOR SANCTION DECISION BY YEAR-END 2020

* SEA LION PROJECT SUSPENDED WITH FARM-IN DOCUMENTATION AGREED

* AS AT END OF APRIL, PREMIER HAD UNRESTRICTED CASH OF $160 MILLION AND UNDRAWN FACILITIES OF C.$330 MILLION

* PRUDENT TO RE-ENGAGE WITH ITS STAKEHOLDERS REGARDING PROPOSED TRANSACTIONS AND EXTENSION TO ITS MAY 2021 CREDIT MATURITIES

* FORECAST 2020 TOTAL CAPEX INCLUDING ABEX NOW STANDS AT $330 MILLION

* FY OPERATING COSTS (INCLUDING LEASE COSTS) ARE CURRENTLY FORECAST TO BE C.$100M UNDER BUDGET RESULTING IN UNIT COSTS OF $18/BOE Source text for Eikon: Further company coverage:

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