Harbour Energy reported this morning that it had made a "strong" start to the year, with a surge in output.
The largest UK-listed independent oil and gas company said in a trading statement that production in the first quarter averaged 215,000 barrels of oil equivalent per day (boepd) - up 35% on the same period last year.
The group added that it is on track to meet full-year guidance of 195-210,000 (boepd).
Net debt has also been reduced to $1.7billion (£1.38billion) at the end of March from $2.3billion (£1.86billion) at the close of last year.
Chief executive Linda Cook said: "Our increased production reflects the addition of the Premier portfolio, improved operating reliability and increased UK drilling activity.
"The Tolmount field in the UK began production in April and, once plateau levels are reached, the project is expected to increase UK domestic gas production by more than 5%."
The discovery in the southern North Sea is currently ramping up to around 20,000 boepd net to Harbour.
The CEO added: "We continue to invest in high return, infrastructure-led opportunities within our asset base to sustain production while at the same time generating material free cash flow. This, together with our robust balance sheet, provides us with significant optionality over future capital allocation.
"We are committed to producing oil and gas responsibly. As well as taking action to reduce emissions from our operations, we are very focused on progressing our CCS (carbon capture and storage) activities in the UK which include the V Net Zero project in the Humber region and an interest in the Acorn project in Scotland. These projects have the potential to capture and store multiple times Harbour's annual emissions."
The company said its production during the first quarter benefited from limited planned shutdowns and no material unplanned outages. Following completion of extensive maintenance programmes in 2021, Harbour reported it had now returned to a more normal maintenance cycle.
It added that its production also reflected continued outperformance from the Greater Britannia satellite wells in the central North Sea and recent new wells on-stream.
Harbour has four offices in the UK - three of them in Aberdeen - and 1,500 employees worldwide.
It was founded by private equity firm EIG Global Energy Partners in 2014 with a strategy to acquire conventional, cash-generative, producing assets outside of North America.
In 2017, Harbour made its first acquisition - backing Chrysaor Holdings to acquire a package of UK North Sea assets from Shell for $3billion (£2.28billion) and, in 2019, it acquired ConocoPhillips UK North Sea for $2.7billion (£2.05billion).
Then last year, through a reverse takeover, Chrysaor merged with Premier to create Harbour.
FTSE 100
The UK's top share index, was up 49 points at 7,293 earlier this morning, after a 26-point gain yesterday.
Brent oil futures were ahead 1.69% at $104.21 a barrel.
Companies reporting today
- Full-year results: Airtel Africa, TUI
- Half-year results: Brewin Dolphin, Compass Group
- Second-quarter results: Disney
- Trading statements: Harbour Energy, ITV, Spirax-Sarco Engineering