SAVP update the market today following yesterday’s hearing at the High Court of Justice who were considering the appointment of administrators to Seven Energy International Limited which is a key step of the transaction. The request was duly granted and as such final long-form documentation with respect to the Transaction completion will now be executed in accordance with agreed steps.
For patient Savannah shareholders it is gratifying to see this important step in the process to clear final hurdles in the transaction and final closure must be very close now.
It’s situation normal at Premier who continue to deliver operational excellence with today’s update no different. Production averaged 79.4 kboed with high operating efficiency of 94% and guidance for the full year remains at the upper end of the 75-80 kboed range.
Catcher continues to dominate with 69/- kboed and with project cash payback reached just 22 months after first oil and approval for area satellites received and first oil expected in early 2021. Big-P in Indonesia is on track for first gas by year end and Tolmount is on schedule for the same milestone for the end of 2020 with the East development sanction expected 2H 2020.
Elsewhere, the sales process for Mexico is again delayed but for all the right reasons, there isn’t room in the data room for all the potential buyers. Yesterday’s hullabaloo around the Tullow profit warning doesn’t affect Premier but does have a slight knock on industry wise and it was Eco that took the biggest hit, unnecessarily so in my view.
With these numbers Prems are generating ‘significant ‘ free cash flow which is ‘materially ‘ deleveraging the balance sheet and the management of the portfolio is proving to be sound with cash expected from the Mexican sale and Sea Lion FID upcoming. Business as usual at Premier…