4th Jun 2014 09:05
LONDON (Alliance News) - Premier Oil PLC said Wednesday it has signed a rig contract and rig sharing agreement for its Falkland Islands exploration and appraisal campaign, for which it expects to commence in the second quarter of 2015.
The rig has been contracted by Premier Oil for the Isobel/Elaine prospect, for which it is the operator, and the company said the campaign will comprise of at least four wells which will test prospects to the south of Sea Lion site, assessing the potential for another Sea Lion-scale discovery.
Premier Oil holds a 60% operating interest in the Sea Lion project.
In October last year, Premier Oil and Rockhopper Exploration PLC signed a deal with Falkland Oil and Gas Ltd to farm-in for two sites which were previously majority controlled by Desire Petroleum and Falkland Oil and Gas - the Isobel/Elaine prospect and the Jayne East prospect.
In a separate statement Wednesday, Falkland Oil and Gas said it will participate in five wells - two wells operated by its partner Noble Energy Falklands Ltd, in the South and East Falkland Basin, and three wells operated by Premier Oil in the North Falkland Basin.
Falkland said it is fully funded throughout its five well programme.
"We are delighted to have secured a suitable deepwater rig," said Falkland Oil and Gas Chief Executive Tim Bushell in a statement.
In another statement Wednesday, Rockhopper Exploration PLC said that a drilling unit has been contracted by Premier Oil to drill a minimum of four firm wells in the North Falkland Basin.
Rockhopper Exploration said Wednesday that while the drilling order has yet to be finalised, Rockhopper and its partners anticipate using the first two firm slots on the rig to drill the Zebedee and Isobel/Elaine prospects, with Noble Energy Falklands taking the third and fourth slots for the South and East Falkland Basin, before the rig returns to the North Falkland Basin for the final two firm wells, which are likely to be the Jayne East and Chatham/Sea Lion West Flank locations.
"The four firm wells in the North Falklands Basin will target a total of over 520 million barrels of Stock Tank Original Oil In Place net to Rockhopper, and will bring the total number of wells Rockhopper has drilled in the Falklands as both operator and non-operator to 19," said Rockhopper Chief Executive Sam Moody in a statement.
Meanwhile, Premier Oil said that the Singa Laut-1 well in Tuna PSC offshore Indonesia, in which it is the operator and holds a 65% interest, has penetrated 177 feet of net gas-bearing reservoir quality sands within the targeted Oligocene sequence. It said the Singa Laut-1 well will now be plugged and abandoned as a successful exploration well.
Premier Oil also said the Ratu Gajah-1 well, also in Indonesia, penetrated the targeted deep Lama section with gas shows. It said sandstone quality was low, but a drill stem test is being performed to demonstrate moveable hydrocarbons.
"We are pleased that the Singa Laut discovery has increased our gross resource estimate on the Tuna Block to a potential 100 million barrels of oil, that Ratu Gajah has provided further valuable information about the Lama play, and that we have secured our high impact exploration programme for 2015 in the Falklands," said Premier Oil Exploration Director Andrew Lodge in a statement.
Premier Oil shares were off 0.5% at 348.10 pence per share Wednesday morning, Falkland Oil and Gas shares were trading 3.0% higher at 26.79 pence, while Rockhopper shares were trading 0.9% higher at 96.58 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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