23rd Dec 2009 07:01
PREMIER OIL plc
("Premier")
Drilling Update - Vietnam and Pakistan; Completion of Sale in Egypt
Vietnam
The Cá Rồng Vang well on Block 07/03, offshore Vietnam has been drilled to a total depth of 3980m BRT. The well encountered the Thong Mang Cau, Dua and Cau reservoirs as prognosed. However, wireline logging has been completed and indicates the well has not encountered any significant hydrocarbons. The well is now being plugged and abandoned as planned.
Pakistan
The Kadanwari-19 well, operated by ENI, has encountered 12m of high quality net gas pay in a Lower Guru Sandstone reservoir. The well targeted an undrilled fault compartment and Premier's estimate of gross reserves added by this discovery is 54 bcf, in line with pre-drill predictions. The forward plan is to test the well and complete it as a producer with first gas planned for April 2010.
Egypt
Premier confirms that it has completed the sale of its 10% interest in the NW Gemsa permit in Egypt to Sea Dragon Energy Inc. The consideration was US$14.8 million after adjustments for working capital. As previously announced, Premier expects to record a profit on sale of around US$9 million.
Simon Lockett, Chief Executive, commented:
"After an otherwise successful year with the drill bit it is disappointing that we have not encountered significant hydrocarbons at the Cá Rồng Vang location. The well has, however, provided important pressure data which will be key in assessing the discovery we made in June at Cá Rồng Đỏ. Further seismic and drilling activity is planned on this large unexplored area. Together with our scheduled North Sea programme, we expect to drill at least 10 exploration and appraisal wells during 2010".
23rd December 2009
Enquiries
Premier Oil plc Tel: 020 7730 1111
Simon Lockett
Tony Durrant
Pelham PR
James Henderson Tel: 020 7337 1501 / 07774 444 163
Gavin Davis Tel: 020 7337 1515 / 07910 104 660
Related Shares:
PMO.L