Premier Oil’s trading update pleased Merrill Lynch who reiterated their bullish stance on the stock. Premier stated this morning that it had acquired 39.7 million barrels of oil equivalent (“boe”) of reserves in Indonesia and the UK for a combined price of US$2.4boe, had success at the Quadapur deep exploration well in Pakistan, found a farm-in partner at its high impact Guinea Bissua acreage, and made good progress on the commercialisation of the Ratna and Dua/Blackbird gas projects.
The update added to Merrill Lynch’s belief that Premier Oil are on track to double production to 60,000 barrels/day by 2010. Merrill increased the its net asset value for Premier Oil to 1333p/share and stated that the company was one of it’s most preferred stocks in Europe.