15th Feb 2005 07:01
Premier Oil PLC15 February 2005 PREMIER OIL PLC ("Premier") Mauritania Drilling Update Further to the releases on 11 January 2005 and 13 January 2005, Premier providesthe following update on the Tiof-6 appraisal well: Following suspension of the well on 17 January, the 'West Navigator' drillshipreturned to the well on 28 January and since then has installed completionequipment and commenced production testing operations. At midnight on 14February 2005, an extended flow period was underway. The well has flowed at a maximum rate of approximately 12,400 barrels of oil perday (bopd) plus 11 million standard cubic feet of gas per day constrained by a104/64 inch choke. Currently the well is flowing at a stable rate ofapproximately 9,150 bopd in the main flow period constrained by a 72/64 inchchoke. The Tiof-6 well is the 4th appraisal well following the two discovery wellscompleted in late 2003. The Chinguetti field, 25km to the south of the Tiof field, was given developmentapproval in May 2004 and is on schedule for first production in early 2006 atapproximately 75,000 bopd, 6,000 bopd to Premier. Development drilling iscurrently underway. The Tevet-1 discovery well drilled in October 2004 islocated within tie-back distance to the Chinguetti field. The West Navigator and Stena Tay drilling rigs will remain on location offshoreMauritania throughout the greater part of 2005, and will be drilling explorationand appraisal wells in addition to Chinguetti development wells. 15 February 2005 ENQUIRIES: Premier Oil plc Tel: 020 7730 1111Robin AllanMark Akers College Hill Tel: 020 7457 2020Ben BrewertonNick Elwes Background For Editors: Premier Oil plc is a leading independent oil and gas company with producinginterests in the UK, Indonesia and Pakistan. Exploration and appraisal isongoing in the UK, South and South East Asia 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. Eleven exploration and appraisal wells were completed in 2004, six of which havesuccessfully found hydrocarbons in Mauritania (Tevet and Tiof wells), Indonesia(Gajah Baru field) and Guinea Bissau (Sinapa). A drilling programme of up to 18 wells is in place for 2005. Exploration ofPremier's Egyptian acreage began in December 2004 with the Al Amir-1 well. InIndia, the Lakkhi-1 well is planned to commence in late February or early March2005. Further wells are planned to be drilled later in 2005 in Mauritania,Indonesia, Guinea Bissau, Gabon and Vietnam. The current partners and interests in PSC A and PSC B in Mauritania are: Company PSC A PSC B Chinguetti Exploitation Perimeter(1) % % %Woodside 53.846 53.846 47.384BG Group 13.084 11.630 10.234Hardman Resources 24.300 21.600 19.008Fusion Mauritania A(3) 4.615 - -Premier - 9.231 8.123ROC Oil 4.155 3.693 3.250Groupe Projet Chinguetti(2) - - 12.000 (1 )The Chinguetti Exploitation Perimeter was granted in May 2004 under theterms of 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 ofthe Mauritanian Government in the Chinguetti oil development. (3) Premier will take up 100% ownership of Fusion Mauritania A (currently ownedby Sterling 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