A quick word on t he Premier interims, I am headed to the meeting and will add more later or tomorrow if it throws up any gems. The figures themself are uncontentious with profits up substantially at $98.4m and EBITDA up 19% to 388.9m. Operationally it’s ok, production in the period was 76.2 kboepd as Catcher ramped up, it is now at plateau production of 70 kboepd gross and overall production averaged 86.2 kboepd in July making it possible to keep guidance at 80-85 kboepd.
Elsewhere Tolmount was recently sanctioned and they added to the exploration portfolio wit h licence awards in Mexico and Indonesia and Zama appraisal starts in Q4. As for Sea Lion I am expecting more detail at the meeting as comments were as sketchy as ever, for the project that will define PMO in the decade of the 2020’s they remain as guarded as ever. That is obviously down to the net debt figure which is down to $2.65bn and will reduce by $300-400m this year, a creditable situation in which covenant leverage ratio is expected to fall to 2.5x but clearly restricts the board somewhat.
Aminex has announced that the tendering process for a rig to drill Chikumbi-1 is complete and bids are being evaluated. The well is expected to delineate the Ntorya field in a significantly thicker section of the Cretaceous reservoir system and to evaluate a potentially deeper exploration target in the Jurassic formation.
For those who have been concerned about delays to this well it will give some comfort that things are progressing on the ground and that with the farm-out heading to completion they will see some signs of the value that has been achieved. I remain confident that the value of Aminex is significantly higher than the market suggests.