26th Jul 2005 07:00
Premier Oil PLC26 July 2005 PREMIER OIL PLC ("Premier" or "the Company") Premier Adds UK Well through Farmout Premier Oil plc, the FTSE 250 independent oil and gas company, is pleased toannounce that it has added a UK well to its near term drilling programme througha farmout of the Company's North Sea licence P1048 to Oilexco North Sea Ltd ("Oilexco"). Under the signed MOU, Oilexco will fund 100% of Premier's cost of drilling awell on the Palomino prospect in return for 31.25% of the P1048 licence. Premierwill retain an 18.75% interest in the licence. The well is planned for drilling in December 2005 using a rig already undercontract to Oilexco. It will explore multiple targets defined by 3D seismic. The arrangement is subject to the conclusion of a full agreement and UKDepartment of Trade and Industry approval. Simon Lockett, Chief Executive of Premier, said: "We are very pleased to have added a further well to our active explorationprogramme at zero cost". 26 July 2004 ENQUIRIES: Premier Oil plc Tel: 020 7730 1111Simon LockettRobin Allan Pelham PR Tel: 020 7743 6670Gavin Davis Background For Editors: Premier Oil plc is a leading independent oil and gas company with producinginterests in the UK, Indonesia and Pakistan and an oil development inMauritania. Exploration and appraisal is ongoing in the UK, South and South EastAsia and Africa. Premier's strategy is to add significant value per share through exploration andappraisal success, astute commercial deals and asset management. The company'soperating business and strong finances put the company in the position tooperate successfully in all reasonable external environments. A drilling programme of approximately 12 wells is in place for 2005. Both wellscompleted so far this year have been successful; the first, a flow test on anappraisal well on the Tiof field in Mauritania and the second was a discoveryand flow test from the Al Amir-1 exploration well in Egypt. An appraisal of theAl Amir discovery is planned for later this year. In India, the Lakkhi-1 wellcommenced in April 2005 and operations continue. Further wells are planned to bedrilled later in 2005 and early in 2006 in Mauritania, Pakistan, Indonesia,Guinea Bissau, Gabon and Vietnam. The current partners and interests in licence P1048 are: Licence P1048 Pre farmout Post farmoutPremier Oil Exploration Ltd (Operator) 50% 18.75%Talisman Energy Beta Ltd 30% 11.25%First Oil Expro Ltd 15% 15%Reach Exploration Ltd 5% 5%Oilexco North Sea Ltd - 50%* * In addition to Premier's farmout, Talisman Energy Beta Ltd are farming out afurther 18.75% interest to Oilexco on the same terms, giving Oilexco a 50%interest in the licence. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PMO.L