Premier Oil made a profit in the first six months of the year boosted by the decline in sterling following the EU referendum and its purchase of oil and gas fields from Eon.

The company, one of the UK’s largest independent oil producers, revealed on Thursday that it had made $110m in profit before tax in the first half after a $215m loss in the same period last year. Underlying earnings fell from $447m last year to $182m as low oil prices continued to take their toll.

Profits were helped by a $101m reduction in what expects to pay to decommission some of its older fields due to .

said it had been able to negotiate the North Sea assets deal because it was willing to from Eon, which wanted to leave the area.

The company also confirmed higher estimates for production rates. It said last month it expected average production over the year at or above 70,000 barrels of oil equivalent a day, having previously said it would be 65,000-70,000 boe.

On Thursday, it put a formal number on that revision, saying it expected the average to be 68,000-73,000 boe.

Premier has yet to agree a deal with its banks to renegotiate lending terms. The highly-indebted company, which has been in talks with its lenders for months, said it needed more time despite weekend reports a deal had been done.

Its directors said a failure to agree a deal would risk its ability to continue as a going concern, but they felt a deal would be struck.

Tony Durrant, chief executive, said: “Full-year production guidance is now increased, which will drive free cash flow generation. We have made substantial progress with our lending group on the principal terms of a refinancing. Our project portfolio has been expanded, positioning Premier for future growth at lower cost.”