17th Aug 2006 07:00
Premier Oil PLC17 August 2006 PREMIER OIL PLC ("Premier" or "the Company") Gas discovery and drilling update Vietnam Premier Oil has completed operations on well Dua-4X ST2 on Block 12E in Vietnam.Following interpretation of a 3D seismic survey acquired in 2005, Premierdrilled the Dua 4X vertical well plus sidetrack Dua-4X ST1 and encountered oiland gas within the northern flank of the Dua structure. Premier then drilled a second geological sidetrack, Dua-4X ST2, to furtherevaluate potential gas and oil reservoirs in the southern fault block of the Duastructure. This sidetrack intersected a gas column within limestones above theprimary target. Further work is required to assess the significance of the gasencountered. However, when the well was operating close to the base of thelimestone column, technical difficulties were experienced. To ensure that the safety of the operation was not compromised Premier hasplugged Dua-4X ST2 and the well will now be redrilled as Dua-5X as a verticalwell into the southern flank of the Dua structure. Following completion of Dua-5X, Premier will drill well 12E-CS-1X on theBlackbird prospect to explore a large tilted fault block updip of a pre-existingwell (12E-LK-1X) which encountered very good oil shows. On completion of the farmout agreement announced on 26th April 2006, and subjectto receipt of the approvals required from the Government of the SocialistRepublic of Vietnam, Premier (as operator) will hold a 37.5% interest in Block12E. The other partners will be Santos (37.5%) and Delek Energy (25%). Premier's Chief Executive, Simon Lockett, said: "We are encouraged by the discovery of gas in an upper zone of Dua's southernfault block in addition to the earlier discovery of oil and gas in the northernflank. We look forward to the result of the Dua-5X vertical well which istargeting oil in the deeper Dua sands." ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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