Premier Sets Sights on Oil at Chim Sao Field

Premier reported an exploration drilling update on its Indonesia and Vietnam operations.

Belut Laut-1 (Tuna Block, Indonesia, Premier 65% equity)

The Belut Laut-1 exploration well has reached the planned total depth of 4,948 meters. Oil shows with high gas readings were reported from a depth of 4,740 meters throughout a gross 155 meter Oligocene sandstone interval. However, logs indicated that the sandstones at this depth were of poor porosity. The well will therefore be plugged and abandoned with oil and gas shows.

Belut Laut, along with Gajah Laut Utara-1 and the successful appraisal of the Ca Rong Do discovery (CRD-2x) in Vietnam earlier this year, has confirmed the potential for hydrocarbons within the Oligocene section in the Nam Con Son basin. The ongoing sub-surface interpretation will now be focused to prospects at shallower depths where good reservoir properties are preserved up dip from proven source rocks. At least five such prospects have been identified in the Tuna acreage and also in the neighboring Block 07/03 in Vietnam. Premier plans to drill the first of these in the second half of 2012.

CS-N2P (Block 12W, Vietnam, Premier 53.125%)

The CS-N2P well, a development production well for the Chim Sáo project, has intersected the shallow part of a previously undrilled fault terrace to the north west of the Chim Sáo field. Based on Logging While Drilling data, the well encountered a 20 meter oil column in an independent closure within good quality Upper Dua Sandstones. The plan is to appraise this new accumulation as a near-field tie-back opportunity via the CS-N1P development well, through which wire-line logs and fluid samples will be acquired. The results of this well are expected in October.

Simon Lockett, Chief Executive Officer, commented, "We have learned from the wells drilled on the Tuna acreage and will now target lookalike prospects in the Nam Con Son basin where the Oligocene reservoirs are at shallower depths and are therefore of better quality.

The discovery of new resources close to the Chim Sáo development is very encouraging and we look forward to the appraisal results later this year."