west aust. article, page-3

mauritania & premier oil... Found this article...seems they all want a piece of Mauritania. Cheers Leo

Thursday March 18, 6:00 PM
NEWS SNAP: Premier Oil FY Net +81% Despite Restructure
By Mark Long


LONDON (Dow Jones)--U.K. oil and natural gas company Premier Oil PLC (PMO.LN) Thursday said its 2003 net profit rose 81% despite charges taken for last year's company-transforming restructuring.

The restructuring, completed in September, saw major shareholders Amerada Hess Corp. (AHC) and Malaysia's state-owned oil and gas company Petroliam Nasional Bhd. (PET.YY), or Petronas, divest their combined 50% stake in the company in exchange for Premier's Myanmar interests and part of its Indonesian business.

The company, which focuses on exploration in West Africa, South Asia and the North Sea, Thursday reported full-year net profit of GBP40.8 million, almost doubled from GBP22.6 million a year ago.

Stripping out GBP22.8 million in restructuring charges, profit after tax but before exceptional items came in at GBP63.6 million. This was just above expectations for GBP62 million, based on average of four analysts' forecasts compiled by Dow Jones Newswires.

The full-year earnings included nine months of income from from the Myanmar and Indonesian operations it no longer holds.

Arounnd 0955 GMT, the company's shares were trading 20.25 pence, or 3.9%, higher at 546.25 pence.

Analysts said the share-price rise is due to investors positioning themselves in anticipation of successful results from Premier's busy 2004 exploration program. High-risk drilling just begun in Guinea Bissau and the U.K. North Sea will be watched closely in particular, with results expected in the next couple of months.

"Although the shares don't look particularly cheap, I don't think they're out of line with the sector," said Seymour Pierce analyst Richard Slape, who's keeping his hold recommendation. Downside for the shares is probably limited even if the early exploration results are disappointing, he added.

Premier's Chief Executive Charles Jamieson said exploration remains the primary focus, noting the company is aiming to drill 15 to 30 wells a year. This year it is scheduled to drill 18 wells, with nine in Mauritania in west Africa where it has a joint venture with Australia's Woodside Petroleum (WPL.AU).

Premier has budgeted around GBP25 million on exploration in 2004. Jamieson said the retructuring brought Premier's net debt to zero from GBP249.5 million, and this, combined with expected cash flow of around GBP60 million a year, forms the financial base for the company's exploration plans.

Oil and gas production averaged 53,600 barrels of oil equivalent a day in 2003. This had fallen to an average of 36,000 boe/d in the first two months of 2004, as a result of the disposals in Myanmar and Indonesia.

While the company's focus remains on exploration, Jamieson said he'd consider acquisitions to balance risk, though there are no purchases in the pipeline right now.


Company Web site: http://www.premieroil.com/