28th Aug 2008 07:17
PREMIER OIL plc
("Premier" or "the Company")
Vietnam Drilling Update
The Chim Công well on Block 12W in Vietnam has been drilled into the basement to a total depth of 2,964 metres, resulting in an oil discovery.
Wireline logging indicated that 7 metres of net oil pay was encountered in a sandstone overlying the basement. A drill stem test confirmed the discovery. Owing to poor rock quality of the reservoir at this location, the oil flow rate achieved was marginal.
The well will now be plugged and abandoned. The partners intend to further investigate this discovery in order to more clearly ascertain the commercial potential of this new play.
Elsewhere on Block 12W similar sandstones are of reasonable quality. Premier will now evaluate the extent of the better quality sandstone and thus determine the potential resource within Chim Công and the potential for similar accumulations within this stratigraphic unit in Block 12W.
Premier (operator) holds a 37.5% interest in Block 12W, with partners Santos (37.5%) and Delek Energy (25%).
Premier's Chief Executive, Simon Lockett, said:
"This result is encouraging for the remaining potential of the block. We will now assimilate the information from this programme before identifying the next set of targets for this block. Meanwhile our development teams continue to advance our plans for the development of the Chim Sáo oilfield, which is our development priority on Block 12W."
28 August 2008
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ENQUIRIES |
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Premier Oil plc |
Tel: 020 7730 1111 |
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Simon Lockett |
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Tony Durrant |
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Pelham PR |
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James Henderson |
Tel: 020 7743 6673 |
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Gavin Davis |
Tel: 020 7743 6677 |
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