Premier Oil Logs Pay with First Egyptian Well

Premier Oil has made an oil discovery with the Al Amir-1 farm-in well, its first exploration well in Egypt.

Operations on the well are continuing following testing of the South Gharib Formation at stable rates of over 750 barrels of oil per day (bopd). Current plans are to suspend this well as a potential future producer.

The Al Amir-1 well was drilled on the onshore North West Gemsa Concession in the Gulf of Suez oil province approximately 300 kilometres southeast of Cairo.

This is the second well result announced by Premier in 2005, the first being a successful test of the Tiof-6 well in Mauritania which flowed at a stable rate of 9,150 bopd. Premier has a program of up to 16 exploration and appraisal wells in 2005.

Premier's Chief Executive, Simon Lockett, said:

'It is very encouraging to have successfully tested oil from our first well on this concession. This shallow discovery is located adjacent to infrastructure, and therefore should be low cost to develop. We are planning to appraise the discovery to determine reserves as well as explore the other plays on this acreage.'