Premier Oil Provides Update on Drilling in UK and Indonesia

The Premier-operated East Fyne Appraisal well, 21/28a-11, has drilled to a total depth of 5,020 feet. The well encountered 11 feet of gas bearing sand within the Upper Tay formation and 8 feet of oil bearing sand within the Middle Main Tay.

The thickness of the oil bearing sand is at the lower end of the pre-drill estimate and the well is being plugged and abandoned. The results of the East Fyne Appraisal well will be incorporated into the Greater Fyne Area go forward plans and a decision on whether a commercial development is viable for Premier is expected to be taken by the end of the second quarter of 2012.

The Sedco 704 rig will now move to drill the Premier-operated Bluebell prospect (Premier 60 per cent working interest) in licence P1466 (UK Block 15/24c) in the Central North Sea. The results of this well are expected in March 2012.

In Indonesia, the Anoa development well (WL-5x) on Natuna Sea Block A was deepened to a total depth of 11,012 feet to investigate the potential of the Lama Formation. The well encountered approximately 300 feet of tight, but fractured, Lama Formation sandstone. Premier said it was not possible to determine from the existing logs whether the fractures contain moveable gas. Subject to partner approval, the plan is to test the Lama interval later this month.

The next exploration well to be drilled in the Natuna Sea Block A will be at Biawak Besar which is expected to spud in March 2012.

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Offshore Energy Today Staff, February 6, 2012