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Premier Oil's appraisal well is a dud

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Premier Oil's appraisal well is a dud

Fri, 17 August 2012
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Premier Oil Quote more

Price: 307.10

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Date: 17:00

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Premier Oil has plugged and abandoned the Chim Sao North West appraisal well in Vietnam after failing to find indications of hydrocarbons.

The well, which reached a total depth of 4,235 metres, was drilled to determine whether the Chim Sao North West discovery extended into a separate fault segment to the north and while 135 metres of sandstone reservoir were penetrated in the Upper Dua interval, there was no indication of hydrocarbons.

Premier also drilled 165 metres of sands in the Middle Dua interval, but said only oil shows were encountered.

More positively, the CS-N17XP well, which was completed immediately prior to the appraisal well, was drilled to produce from the North West extension to the Chim Sao Field. It was brought on-stream earlier this month with initial extended production test rates averaging 4,000 barrels of oil per day from four Upper Dua reservoirs.

Simon Lockett, Chief Executive Officer, said: "The information gained from the appraisal well will now be integrated with Premier's existing knowledge to better understand the potential in the other untested areas adjacent to the Chim Sao discovery. Meanwhile, the initial production rates from the Chim Sao North West accumulation are extremely encouraging."

NR

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