Premier 'Encouraged' by Results of Wildcat Well Offshore Vietnam

Independent explorer Premier Oil said Tuesday it was encouraged by the results of its 121-CV-1X wildcat exploration well in the Phu Khanh Basin, offshore Vietnam.

The 121-CV-1X well, on Block 121, was drilled to a total depth of 12,305 feet and targeted the "Whale" (Ca Voi) prospect. It encountered sands in the deep clastic section, which is believed to be Oligocene in age, but Premier said these sands proved to be water wet. Potential source rocks, including coals, were also encountered with the section.

In the shallower Miocene section, the well penetrated a wet gas-bearing interval associated with indications of overpressure. The gas is thermogenic in origin and, Premier said, demonstrates that a working petroleum system is present in Block 121.

The well is being plugged and abandoned.

Premier Chief Executive Simon Lockett commented in a company statement:

"121-CV-1X was a frontier exploration well and was the first to test the prospectivity of the Oligocene section in the Phu Khanh Basin. The presence of deep clastic reservoir rocks and an active petroleum charge in this first wildcat exploration well is encouraging."