- Oil producer Premier Oil downgraded its annual production guidance following an unplanned outage at the Catcher field in the North Sea.

Output in 2020 was now expected at between 65k and 70k barrels of oil equivalent per day.

Production had averaged 70.1 kboepd in April, impacted by the Catcher outage, which had now been resolved, and cessation of production at the Huntington asset.

Premier Oil said first gas at its Tolmount asset was now expected in the second quarter of 2021, the schedule having been impacted by the Covid-19 crisis.

The company said it expected to be 'broadly free cash flow neutral' for full year 2020 at the current forward oil-price curve.

Premier Oil said 30% of 2020 volumes were hedged at $60 per barrel including about 50% of second-quarter oil production at $64 per barrel.

'We continued to generate free cash flow during the period and, based on the current forward curve, expect to be broadly free cash flow neutral for the full year, benefitting from our hedging programme and action taken to reduce our expenditure,' chief executive Tony Durrant said.

At 9:09am: [LON:PMO] Premier Oil PLC share price was -1.17p at 25.83p

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