Premier Oil to Spud CRD-2X Well Offshore Vietnam

Premier Oil Vietnam plans to spud an appraisal well in Block 07/03 offshore Vietnam within the next few weeks, announced partner Pan Pacific Petroleum. The CRD-2X appraisal well will evaluate the oil and gas discovery made by well CRD-1X on the Ca Rong Do prospect in June 2009. The discovery well encountered about 295 feet (90 meters) of net pay comprising both oil and gas within multiple stacked reservoir layers. Two of these reservoir zones were tested and flowed oil at a combined rate of 3,625 barrels of oil per day plus 8.1 MMcf/d of natural gas through a 48/64-inch choke. Water was not produced from either zone. The appraisal well is designed to reduce uncertainty on whether the CRD structure holds sufficient volumes for a potential development.

Block 07/03 spans 1.2 million acres (4,915 square kilometers) in the prospective Nam Con Son Basin, and is adjacent to block 12W which contains the Chim Sao and Dua oil fields. Premier operates Block 07/03, holding a 30% interest. Partners on the block include Vietnam American Exploration Company (40%), PearlOil (15%), PetroVietnam (10%), and PPP (5%).