Harbour Energy provides a Trading and Operations Update for the five months to 31 May 2021, ahead of the Company’s Annual General Meeting today.

Highlights

• All share merger between Chrysaor Holdings Ltd and Premier Oil plc successfully completed on 31 March to create Harbour Energy plc; integration progressing as planned
• Proforma / reported production of 197 kboepd / 162 kboepd, reflecting planned maintenance and inspection programmes deferred from 2020 to 2021 and unplanned outages during the period
• 2021 proforma / reported production now expected to be at the low end of 200-215 kboepd / 185-200 kboepd guidance
• Tolmount final commissioning underway with production start-up expected around the end of July, adding 20-25 kboepd (net, Harbour 50 per cent)
• Operating costs for the period were $15.7/boe due to lower production volumes; forecast full year operating costs now $15-$16/boe
• Total capex (including decommissioning spend) for the period of around $330m; full year forecast of $1.1bn unchanged as rig activity increases
• Net debt reduced to $2.7bn (31 March 2021: $2.9bn) with available liquidity of around $1bn
• Successful annual redetermination of the Group’s Reserve Based Lending (RBL) facility completed in June with availability set at $3.3bn until the end of June 2022

Linda Z Cook, Chief Executive Officer, commented:
“Since completion of the merger, integration continues apace and we remain excited by the significant cash generation potential of the combined portfolios.

Despite the impact of maintenance programmes and some unplanned outages, our financial performance has been robust, underlining the resilient cash-generative nature of our business. This, together with our strong balance sheet, provides financial flexibility to fund reinvestment in our portfolio, growth and shareholder returns.

With the majority of this year’s planned maintenance shutdowns nearing completion, drilling activity ramping up and Tolmount first gas expected shortly, we look forward to production increasing over the remainder of 2021.”

KeyFacts Energy: Harbour Energy UK country profile