By Rob Davies
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BP and Premier Oil celebrated a red-letter day, as they each followed up on an oil-friendly Budget with upbeat announcements.
Premier said its pre-tax profit climbed nearly 40 per cent to reach ?89.3million thanks to the persistently high price of oil.
And BP won permission to drill its controversial North Uist well in deep water in the West of Shetland area, which was targeted for tax breaks in the Chancellor?s Budget.
All's well: The Budget was good news for oil majors such as BP and Premier Oil
The tax relief was part of a package that offered a peace pipe to the oil industry, after last year?s ?2billion-a-year hike in corporation tax for North Sea companies.
One firm that was not badly hit by last year?s change, but stands to benefit from the latest measures, is Premier Oil (up 2.2p to 426.2p).
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Premier was able to offset historical development costs against the increase in corporation tax from 20 per cent to 32 per cent.
The advantage helped it to a strong year in which it reached its target of increasing production to 60,000 barrels per day by the end of the year.
It also snapped up rival EnCore in a ?221million takeover that saw it raise its stake in the 100m Catcher oilfield to 50 per cent and take on the role of operator for the prospect.
The deal means Premier has upped its resource estimates from 488million barrels to 527milion barrels and is on course to reach production of 100,000 barrels per day from existing projects.
Boss Simon Lockett said Premier was ?in the best place in its entire history?.
?We had a good quality portfolio in the first place, but the Budget didn?t half help,? he said.
?We?re the sort of company Mr Osborne should be promoting.?
Lockett has nearly ?900m of cash on the balance sheet after securing ?220m in new lending and he said acquisitions were on the cards.
?We still need more because in three years? time we?ll be throwing off $2billion (?1.3billion) a year of cash after tax,? he said.
?We will continue to look for other places around the world to expand the exploration piece,? he added.
Separately, BP (down 5p to 476.55p) was given the go-ahead by the Department of Energy and Climate Change for a well in waters nearly as deep as its infamous Macondo well in the Gulf of Mexico.
Energy minister Charles Hendry said his department had ?very carefully scrutinised BP?s plans and their emergency response measures to ensure their operations are conducted to the highest possible standards?.
Environmental groups have condemned the plans, warning of the potential for a catastrophic oil spill.
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