Premier Oil Makes North Sea Discovery with Carnaby Well

Premier Oil Makes North Sea Discovery with Carnaby Well

Premier Oil announced Wednesday that its Carnaby exploration well in the Greater Catcher area of the UK North Sea has discovered oil.

Premier said that initial analysis revealed that well 28/09-5A encountered 51 feet of net pay within an estimated 86-foot oil column in the main Tay sandstone. A core was taken and this confirmed "excellent quality sandstones", according to the firm (which is the operator of the well with a 50-percent interest).
Oil analysts at Deutsche Bank noted that the discovery should be good for Premier's shares, which have been struggling in recent months. 
"The result de-risks a number of other prospects in close proximity which may be future drilling candidates, but perhaps more importantly, should start to address the bearish sentiment we currently see in the market on Premier's exploration delivery," said Deutsche's oil sector analyst team in a research note on the company, which also noted it was a "small positive" for Cairn Energy.
Cairn is a partner of Premier in Carnaby through its subsidiary Agora Oil and Gas, which has a 15-percent interest. 
"The discovery of good quality oil in the western part of the block is encouraging and the results from the Carnaby well will be used to calibrate the remaining exploration potential in this part of the block," said Premier CEO Simon Lockett in a statement.
"In addition, the data from the Carnaby well will contribute to the ongoing development planning for the Catcher Area which continues to move forward focusing on the production of oil from the previous discoveries on Block 28/9a."
Premier added that the Carnaby well will now be plugged and abandoned ahead of the rig moving to drill the high-risk Coaster prospect on Block 28/10a immediately east of the Catcher acreage.


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