UK's Premier Strikes Oil on Indonesia's Buton Block
|Monday, June 25, 2012
UK-based Premier Oil said Monday that it will plug and abandon two high-risk wells in the North Sea and Indonesia.
The Coaster exploration well on UK Block 28/10 will be abandoned as a dry hole, while the Benteng-1 well on the Buton block in Indonesia will be plugged and abandoned after making a small oil discovery, which Premier Oil said could potentially be commercial.
The Benteng-1 exploration well at the block reached a total depth of 12,424 feet and encountered good oil shows over a 111 feet interval. Log analysis indicated a 15-feet oil bearing Tertiary limestone reservoir.
"The Benteng-1 results are encouraging as they have established a working petroleum system in a previously unproven basin," Premier's CEO Simon Lockett said in a press statement.
The Benteng-1 well is the first well that struck hydrocarbons in the frontier Buton Basin.
Premier has a 30-percent interest in the Buton block, while Japan's Japex owns the remaining 70-percent stake. Japex is the operator of the block.
The next exploration well to be drilled by Premier in Asia is the Chim Sao Northwest appraisal well, which is due to spud in July. The well, sited in Vietnam, could contain 13 million barrels of oil (MMbo) to 20 MMbo, Premier said on March 22, 2012. The company projects first oil from the Chim Sao Northwest appraisal well in 2014.
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