13th Sep 2005 07:05
Premier Oil PLC13 September 2005 PREMIER OIL PLC ("Premier") Drilling Update Premier reports that operations at the Maliri-1 exploration well in the JhangaraLicence, Pakistan, and Iris Iboga Marin-1 exploration well in the SterlingEnergy operated Iris Marin Licence, offshore Gabon, have been completed, andthat wireline logs have been acquired at the Espadon 1A well in PSC Area Boffshore Mauritania. The Maliri-1 Well The Maliri-1 well was drilled to a shallow Pab sandstone target; it foundexcellent reservoir quality sandstones but with no gas charge. The well wasdrilled approximately $1m below budget. Prior to drilling Premier reduced itsinterest in the licence to 18.75%. Iris Iboga Marin-1 Well The Iris Iboga Marin-1 well was drilled to evaluate a sub-salt Gamba sandstonetarget; it penetrated over 30 metres of excellent reservoir-quality sandstonesbut these were water bearing. The well is being plugged and abandoned as a dryhole and it fulfils the work commitment on the licence. Espadon-1A Exploration Well The Espadon-1A well was drilled by the 'Stena Tay' drill rig to a final depth of3042 metres. Wireline logs were then acquired for the well. Preliminary analysisof these logs and data acquired while drilling indicate that no significanthydrocarbons were encountered in the well. At midnight on 12 September 2005, preparations were underway to plug and abandonthe well. The 'Stena Tay' will then move to the Tevet-2 well location. Forward Programme A drilling programme of approximately 12 wells is in place for 2005. Twosuccessful wells have been completed so far this year; the first, a flow test onan appraisal well on the Tiof field in Mauritania and the second was a discoveryand flow test from the Al Amir-1 exploration well in Egypt. Further wells areplanned to be drilled later in 2005 and early in 2006 in Mauritania, Indonesia,Guinea Bissau, Vietnam and the UK. Simon Lockett, Premier's Chief Executive Officer said: "Whilst these well results are disappointing, we are still only midway throughour exploration programme for the year with a further six wells to drill and twosuccesses to date. In addition we have high impact wells planned for early 2006in Guinea Bissau and Vietnam. We were encouraged by the quality of the reservoirs found at both the Maliri andthe Iris Iboga Marin wells. We will now review the information gained in thewells prior to deciding how to proceed with other opportunities in those areas. The Espadon well was the second of a five well programme in Mauritania. The nextwell, Tevet-2, has the double objective of appraising the 2004 Tevet discoveryand exploring a deeper target." 13 September 2005 ENQUIRIES: Premier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PR Tel: 020 7743 6670James HendersonGavin 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. The partners and interests in the Jhangara Block are: Current Interests Exploration PhasePremier Oil Pakistan Offshore BV (Operator) 18.75%BHP Billiton 37.5%OMV (Pakistan) Exploration GMBH 18.75%Oil & Gas Investment Ltd 15.0%Petroleum Exploration (PVT) Ltd 10.0% The partners and interests in the Iris Marin Licence are: Current Interests Exploration PhasePremier Oil plc 18.00%Afren plc 12.86%PetroSA 22.86%Sterling Energy plc (Operator) 20.57%PanOcean Energy 25.71% The current partners and interests in PSC A and PSC B in Mauritania are: Company PSC A PSC B Chinguetti Exploitation Perimeter1 % % %Woodside 53.846 53.846 47.384BG Group 13.084 11.630 10.234Hardman Resources 24.300 21.600 19.008Fusion Mauritania A3 4.615 - -Premier - 9.231 8.123ROC Oil 4.155 3.693 3.250Groupe Projet Chinguetti2 - - 12.000 1 The Chinguetti Exploitation Perimeter was granted in May 2004 under the termsof the Production Sharing Contract for Area B (PSC B) and contains theChinguetti oil development. The Government of Mauritania exercised its right toparticipate in this area effective from 9 November 2004 and retains the right toparticipate in new developments outside this area. 2 Group Projet Chinguetti is an entity set up to represent the interests of theMauritanian Government in the Chinguetti oil development. 3 Premier will take up 100% ownership of Fusion Mauritania A (currently owned bySterling Energy and Premier) on completion of the transaction announced on 28May 2003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PMO.L