14th Dec 2006 07:02
Premier Oil PLC14 December 2006 PREMIER OIL PLC ("Premier" or "the Company") Vietnam Update Blackbird Well Testing Result Premier is pleased to announce that it has successfully completed drill stemtesting of the Blackbird discovery well (12E-CS-1X) on Block 12E, offshoreVietnam. As annouced on 16 November 2006, the Blackbird well discovered four oilbearing intervals in the main middle Dua sandstone target, two of which have nowbeen tested. The first zone tested flowed oil at a sustained rate of 2,177barrels of oil per day ("bopd") plus 1.63 million standard cubic feet of gas perday ("MMscfd"), through a 44/64" choke with a wellhead pressure of 618 psi. Thesecond zone tested flowed oil at a sustained rate of 3706 bopd plus 2.49 MMscfdthrough a 64/64" choke with a wellhead pressure of 544 psi. No water wasproduced on either test. Following the completion of the drill stem tests the Blackbird well will besidetracked to obtain further information from the reservoir. The sidetrack willaccelerate the appraisal of the Blackbird field which Premier is commencing withpreparation of resource assessments and reservoir evaluation reports. The Blackbird discovery is located 21 kilometers to the south west of the Duadiscovery announced by Premier in October 2006, for which the commercialisationprocess has already commenced. Block 7&8/97 option exercised Premier also announces that it has exercised an option to acquire a 45% workinginterest in, and operatorship of, Block 7&8/97, offshore Vietnam. Block 7&8/97 is located in the Nam Con Son Basin, immediately to the south eastof Block 12, operated by Premier where the Dua and Blackbird oil discoverieshave recently been announced. Premier has already worked with its partner,Vietnam American Exploration Company ("VAMEX"), to acquire, process andinterpret a comprehensive grid of 2D marine seismic data across Block 7&8/97 andthese have demonstrated the existence of the same play elements which createpetroleum prospectivity in Block 12. The seismic interpretation has identifiednumerous large structures suitable for high impact well locations. Premier's Chief Executive, Simon Lockett said: "We are delighted with a combined flow rate of around 6,000 boepd from two zoneswithin our Blackbird discovery. This follows on from the successful testing ofour Dua discovery announced in October 2006. We will now move rapidly intopre-development work on both assets. The exercise of our option on Block 7&8/97 is part of Premier's continuingstrategy of acquiring and operating high impact exploration assets and buildingon our excellent regional understanding. Premier is already preparing for a fulltechnical and commercial evaluation ahead of a drilling campaign planned for2008." 14 December 2006 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 Notes for editors: On completion of the previously announced farm-out agreement, Premier (asoperator) will hold a 37.5% interest in Block 12E. The other partners will beSantos (37.5%) and Delek Energy (25%). The transaction whereby Premier Oil will acquire the operatorship and interestfrom VAMEX is subject to all necessary approvals from Petrovietnam and theGovernment of Vietnam. Following completion of the farm-in the equity in Block 7&8/97 will be Premier Oil Vietnam B.V. 45% (operator), VAMEX 55%. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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