27th Jun 2019 09:45
(Alliance News) - Premier Oil PLC has "significantly" increased the resource estimate for Mexico's offshore Zama oil field, the company said Thursday.
Premier has been evaluating data acquired from an appraisal campaign at the field, made up of two appraisal wells and a vertical side-track well.
Data included high resolution wireline logs, "extensive" fluid sampling and pressure data, as well as core and drill stems.
One of the appraisal wells, Zama-3, proved the lateral continuity of the oil reservoir 2.4 kilometres to the south of the Zama-1 well, with the quality of the sands towards the top end of expectations.
"The data has demonstrated reservoir properties at the upper end of expectation, including a higher net-to-gross ratio, better porosity and increased hydrocarbon saturation. This has resulted in a higher estimated oil-in-place and ultimate recovery from the Zama field," said Premier.
The new gross resource at Zama is now seen at between 670 million and 970 million barrels of oil equivalent.
Chief Executive Tony Durrant commented: "We are delighted with the results of the latest Zama appraisal well which, together with the positive results from the earlier appraisal wells, has caused us to significantly upgrade our resource estimates of the Zama structure."
"Our focus now turns to selecting the optimal development for the field, ahead of taking a final investment decision next year."
The company first reported the successful outcome of initial appraisal work at Zama in January, with the appraisal programme coming in at around USD60 million.
Premier's shares were 2.1% higher on Thursday morning at 79.87 pence each.
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