What's new
â– $300m non-cash impairment on oil assets
â– Record production revealed for 2014
â– 2015 development spending cut by 40 per cent
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Premier Oil (PMO) said it would take a $300m (£198m) fair value write-down on its assets and has asked North Sea contractors to take a 10 per cent pay cut in response to Brent crude's downward path. With one eye on the oil price, Premier has put the lid on any near-term discretionary drilling, but is still moving ahead with plans to drill eight wells this year. Overall, planned development spending for 2015 is expected to be 40 per cent down on last year. Management also said that a share buyback programme was to be postponed, pending a recovery in the oil price.