Harbour Energy PLC on Wednesday said it is on track to meet its annual production guidance following a rise in first quarter output.

For the three months ended March 31, average production rose 35% annually to 215,000 barrels of oil per day from 158,000 boepd a year before, driven by the continued integration of Premier Oil’s portfolio since the merger of Premier and Chrysaor Energy in March 2021, forming Harbour Energy.

This includes an increase in Harbour’s interest in Elgin Franklin to 19% from 14% a year prior. The group also cited increased drilling activity and operational reliability, which brought new wells on-stream.

During the quarter, the North Sea-focused oil and gas firm brought on-stream the Jade South well at J-Area in January, and post-period the Tolmount field in the southern North Sea commenced production, and is ramping up to expected plateau rates of 20,000 boepd.

Harbour’s estimated revenue for the first quarter was around $1.5 billion, with post-hedging average oil and gas prices standing at $84 per barrel and $160 per barrel of oil equivalent, respectively.

Looking ahead, Harbour Energy reiterated its 2022 production guidance of 195,000 to 210,000 barrels per day, while total capital expenditure is guided to reach $1.3 billion, after capex for the quarter reached $160 million.

‘We have had a strong start to the year. Our increased production reflects the addition of the Premier portfolio, improved operating reliability and increased UK drilling activity,’ said Chief Executive Linda Cook.

‘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,’ Cook added.

Shares in Harbour Energy were down 0.3% at 463.00 pence on Wednesday in London.

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