UPDATE 1-Premier Oil eyes more buys as profit drops

* H1 daily production averaged 39,700 boepd

* targeting 75,000 boepd output

* net profit fell 62 percent

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By Tom Bergin

LONDON, Aug 27 (Reuters) - UK oil explorer Premier Oil (PMO.L) said it plans to keep growing by acquisition, as it unveiled lower profits due to cheaper oil but a higher medium term production target on the back of a takeover this year.

Premier said a series of fields in the North Sea were coming onto the market as big oil companies such as Italy's ENI (ENI.MI) scaled back in the mature oil province and that this would create opportunities for companies like itself.

"We see opportunities to grow by acquisition," Chief Executive Simon Lockett told Reuters in a telephone interview.

The London-based company said it was now targeting daily production of 75,000 barrels of oil equivalent per day (boepd) in the "medium term", up from a target of 50,000 boepd.

Daily production averaged 39,700 boepd in the first half of the year, up 4 percent on the same period in 2008.

In March, Premier agreed to buy the North Sea unit of troubled Canadian oil producer Oilexco.

Premier said net profit fell 62 percent due to lower oil prices. (Reporting by Tom Bergin, editing by Will Waterman)