Premier Oil Plc, the UK explorer operating in Europe, Asia and Africa, plans a drilling program in Vietnam and Norway in the second half of this year and is also considering possible acquisitions.

The London-based company posted a 62 percent decline in first-half profit on lower crude prices. Net income dropped to US$26.9 million, or 26.2 cents a share, from $71.2 million, or 70.4 cents, a year earlier while sales fell 45 percent to $213.9 million.

The explorer is investing in Indonesia and Vietnam to raise overall production to about 75,000 barrels a day in the medium term. Production rose 4 percent to 39,700 barrels of oil equivalent a day in the first half from 38,000 barrels of oil equivalent a day a year earlier.

Premier Oil fell 4.4 percent to 1,253 pence as of 8:51 a.m. in London. The shares have climbed 56 percent this year.

Chief Executive Officer Simon Lockett and Chief Financial Officer Tony Durrant said in a joint telephone interview the company is looking at acquisitions, with Lockett commenting in a statement that Premier “moved quickly this year to take advantage of good quality acquisition opportunities.”

Premier Oil completed the acquisition of Oilexco North Sea Ltd. in the UK in May and a 25 percent interest in a Vietnamese offshore project from Delek Energy Systems Ltd. in July for a total $573 million and said it has cash to fully fund development and for further purchases.

Cash resources and undrawn bank facilities were about $500 million at the end of June, while operating cash flow in the first half of the year fell to $113.4 million from $191.1 million. The company is also rolling over existing bank loans.

(MONRE)