LONDON (ShareCast) - High oil prices and an increase in production sent first half net profit up to $71.2m at Premier Oil, 247% better than the previous year.

Production rose 11% to 38,000 barrels of oil equivalent per day (boepd) and is on track to hit the firm’s target of 50,000 boepd by the end of 2010.

Premier attributed the production hike to strong output from the Scott and Kyle oil fields in the North Sea, Wytch Farm in Dorset and incremental production from the Zamzama Phase 2 project in Pakistan.

“Given our financial strength we are turning to new projects which will underpin Premier's next phase of growth,” said chief executive Simon Lockett.

In a separate statement, it said the Chim Công well on Block 12W in Vietnam has discovered oil, but the oil flow rate achieved was marginal due to poor rock quality of the reservoir.

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