28th Apr 2014 07:10
LONDON (Alliance News) - Premier Oil PLC Monday said it has discovered oil offshore Indonesia and gas onshore Pakistan, while the company also rejected Ophir Energy's bid to merge the two businesses together.
Ophir Energy confirmed Monday that its proposals to merge businesses with Premier Oil was rejected and said that it is not longer considering making an offer for Premier Oil.
"The Ophir board believed that merging the two businesses provided the potential to create a well-funded, re-focussed, full cycle exploration and production company. However, the proposal was subsequently rejected by the Premier Board," Ophir said in a statement.
Premier Oil, which has oil and gas interests in the North Sea, South East Asia and in the Middle East, Africa and Pakistan regions, said it has discovered oil offshore Indonesia at Kuda Laut in the Tuna Block, as well as a gas discovery in the Kadanwari block onshore Pakistan.
The FTSE 250 oil and gas producer said that the Kuda Laut-1 well in Tuna Block offshore Indonesia, which it operates and holds a 65% interest, has discovered 183 feet of net oil-bearing reservoir and 327 feet of net gas-bearing reservoir.
It said the well will be side-tracked to drill the Singa Laut prospect in the adjacent fault block, with the results of this side-track expected in late May, alongside the results of drilling which continues at the Ratu Gajah-1 exploration well in the Natuna Sea Block A.
"Discovering oil at Kuda Laut is of particular significance and we now look forward to the results of Singa Laut. This is the first of a number of high impact wells Premier plans to drill over the next 12 months," said Exploration Director Andrew Lodge in a statement.
Premier Oil said that K-36 well on the Kadanwari block onshore Pakistan, of which it holds a 15.79% interest in, encountered a total net gas pay of 65 feet and flowed at 50 million standard cubic feet per day, through a 64/64 inch choke on test.
It said the well was tied-in to the Kadanwari facilities and has been on production since April, while operations of the K-34 well on the Kadanwari block are ongoing, with results expected in May.
Premier Oil also said that the Badhra-8 well on the Badhra block onshore Pakistan, in which its holds a 6% interest, was plugged and abandoned as a dry hole, while operations at the Badhra South-1 deep well continue with results expected in May.
Premier Oil shares opened 0.4% lower Monday at 325.40 pence, while Ophir Energy shares were trading 0.5% higher at 244.40 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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