The operators updated Operating Expenditure (OPEX) was at $16 per barrel of oil, which is 14% below budget. The company said a “weaker sterling exchange rate” will continue to reduce “the cost of sterling denominated opex, capex and debt”.

This is good news for Premier, who are currently $2.6billion in debt, with the firm advising “Negotiations with lenders are progressing well with the main covenant test deferred while discussions are finalised”.

Tony Durrant added “Over the period, we have delivered a robust production performance, achieved first oil from Solan, completed the E.ON acquisition and reached milestones on the Catcher project”.

“We have continued to secure cost reductions across the business and are set to benefit from recent foreign exchange movements”.

“We now look forward to a rising production and, with Solan on-stream, significantly lower committed capital expenditure. At current oil prices, we start to generate free cash flow later this year which positions us well to manage the balance sheet whilst retaining some optionality for future growth projects”.

Premier has clarified that its North Sea Catcher project was on schedule with the FPSO hull now in Singapore. It also reported that the project’s costs are now 20% lower than what was originally estimated.

Catcher is expexted to reach a rate of 50,000 boepd. It should deliver first oil in 2017.