Premier Oil plc reported earnings and production results for the year ended December 31, 2015. For the year, the company reported capital spending of approximately $845 million (development) and $190 million (exploration, pre-tax). The company retains significant cash and undrawn facilities of $1.2 billion as at 31 December with net debt of $2.2 billion.

For the year, the company reported production performance of 57.6 kboepd against 63.6 kboepd a year ago. The reduction from 2014 principally reflects the sale of the Scott area which contributed 3.8 kboepd in 2014, and natural field decline.

Production in 2016 is expected to be around 65 kboepd -70 kboepd, reflecting some natural decline in existing production portfolio, offset by new production from the Solan field and a contribution from the E.ON UK assets on completion. Planned development and exploration spend for 2016 is anticipated to be 32% lower at around $700 million, reflecting the completion of the Solan development, limited committed development expenditure beyond the ongoing Catcher project and the completion of the Falkland Islands drilling programme. Capital expenditure guidance for 2016 is higher than that provided in Trading Update in November ($650 million) due to additional deferral of costs from 2015 to 2016 and the impact of the weather delays on Solan first oil.