18th Jan 2006 16:50
Premier Oil PLC18 January 2006 PREMIER OIL PLC ("Premier" or "the Company") Drilling update Premier notes Oilexco's announcement of drilling results for the Palomino wellwhich has been plugged and abandoned as a dry hole. Whilst Premier held an 18.75% equity in the block, it did not contribute to thecost of this well following a farmout agreement with Oilexco. Oilexco Incorporated: Drilling Results for Palomino Property CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2006) - Oilexco Incorporated("Oilexco") (TSX:OIL)(AIM:OIL) announces that drilling results for its Palominoprospect located in Block 21/6a, UK Central North Sea, indicate that there areno commercial quantities of hydrocarbons from the well 21/6-7. Oilexco paid84.21% of the 21/6-7 well, for a 50% interest in the Palomino project. The wellis currently being plugged and abandoned. "While we are disappointed that the drilling results are unfavourable, it mustbe noted that this exploratory prospect was one of the higher risk opportunitiesin our portfolio. We are pleased that our drilling techniques resulted in thiswell being drilled in a relatively short timeframe at a cost well under budget",said Arthur Millholland, President and CEO of Oilexco. "We have a largeinventory of appraisal and exploratory drilling opportunities ahead of us in theUK North Sea that we are pursuing with the semi-submersible Sedco 712 under longterm contract, and the semi-submersible Bredford Dolphin under a three wellcontract commencing later in the first quarter. Oilexco's Brenda-Nicol projecthas shown that positive findings from drilling can be quickly translated intodevelopment plans." Forward Looking Statements This disclosure contains certain forward-looking estimates that involvesubstantial known and unknown risks and uncertainties, certain of which arebeyond Oilexco's control, including: the impact of general economic conditionsin the areas in which the Company operates, civil unrest, industry conditions,changes in laws and regulations including the adoption of new environmental lawsand regulations and changes in how they are interpreted and enforced, increasedcompetition, the lack of availability of qualified personnel or management,fluctuations in commodity prices, foreign exchange or interest rates, stockmarket volatility and obtaining required approvals of regulatory authorities. Inaddition there are risks and uncertainties associated with oil and gasoperations, therefore Oilexco's actual results, performance or achievement coulddiffer materially from those expressed in, or implied by, these forward-lookingestimates will transpire or occur, or if any of them do so, what benefits,including the amounts of proceeds, which Oilexco will derive therefrom. Allstatements included in this press release that address activities, events ordevelopments that Oilexco expects, believes or anticipates will or may occur inthe future are forward-looking statements. These statements include futureproduction rates, completion and production timetables and costs to completewells. These statements are based on assumptions made by Oilexco based on itsexperience perception of historical trends, current conditions, expected futuredevelopments and other factors it believes are appropriate in the circumstances. Oilexco is listed on the Alternative Investment Market of the London StockExchange plc ("LSE-AIM") and the Toronto Stock Exchange ("TSX"), trading underthe symbol OIL 18 January 2006ENQUIRIESPremier 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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