Premier's future successes depend on CEO appointment

Premier Oil saw post-tax profit fall 7% to $234 million (£140.7 million) in 2013, hit by a $67.9 million impairment charge from the temporary shutdown of the Balmoral field in the UK.

The company also missed its production target of 75,000 barrels of oil equivalent per day (boepd), achieving just 58,200 boepd, a slight increase on 2012's 57,700 boepd average. However, production in December was up to 69,000 boepd and shares rose by 1% on Thursday as the company announced a 5p per share dividend.

Outgoing chief executive Simon Lockett commented: "Premier is well financed, strongly profitable and has rapidly growing cash flows. Production year-to-date is ahead of plan.

"Cash flows will be invested in high-quality projects or returned to shareholders. Our focused exploration programme offers exposure to material wells in proven basins."

In 2013, Premier made six discoveries out of seven wells drilled, with notable discoveries in Norway, Indonesia, Pakistan and the UK. It was also awarded three blocks in Brazil.

Premier highlighted future drilling results from Indonesia, Norway, Kenya and the Falkland Islands in 2014 and 2015.

Analyst view

Oil and gas analyst and founder of HydroCarbon Capital Malcolm Graham-Wood found little in the way of new news from the update.

"Everything depends on who the board decide the new chief executive is to be," he said.

"No policy, such as farm-outs of Sea Lion or Catcher are underway, nor will they be until that person arrives at his desk."

He added that he "perceive[s] better plays in the exploration and production sector" and advised would-be investors: "Wait until the appointment is made and a direction for the company is indicated."