CORRECTED-UPDATE 1-Premier Oil production beats expectations, shares rise
(Recasts to correct development spending was adjusted up, not down)
By Karolin Schaps
LONDON May 13 (Reuters) - Premier Oil produced less oil and gas in the first quarter of the year, but its output of 60,200 barrels of oil equivalent per day (boepd) was above guidance, sending its shares higher on Wednesday.
The London-listed firm, whose operations stretch from the Falkland Islands to Indonesia, saw first-quarter production fall 8.5 percent year on year. That drop reflected an oilfield sale in the North Sea and some natural decline in output across its producing fields.
The result was above levels expected on a full-year production target of 55,000 boepd, analysts said, lifting its shares 3.3 percent by 0746 GMT.
"Production ... is around 9 percent above 2015 guidance ... as operational uptime continues to support stronger than anticipated volumes, particularly in Vietnam," said analysts at Deutsche Bank.
The oil firm revised its development spending up by $50 million to $750 million, bringing its total capital expenditure for 2015 up to $970 million.
Its exploration budget remains $220 million.
Premier Oil's main frontier exploration work is focused on the Falkland Islands, where oil drilling remains controversial due to a sovereignty dispute between Britain and Argentina. Continuación...