Premier Oil Profits Fall

Operating profits have fallen in the first half of the year for UK-based oil and gas company Premier Oil to $82.8m from $108.8m in the same period 2006.

The fall is due to write-downs associated with unsuccessful drilling and the higher cost of sales.

Production rose to 34,100 bpd (barrels per day) up 5% on second half 2006 (32,400 bpd) with a current run-rate above 37,000 bpd.

Premier says it is on track to deliver 50,000 bpd production by the end of 2010 from existing projects with the capability to exceed this level in 2011.

By staff writer