Premier Takes Stake in North Sumatra Block A

Premier Oil and its partners Medco and Japex have acquired a stake in the North Sumatra Block A PSC located onshore Indonesia from a subsidiary of ExxonMobil which holds a 50% working interest in the block.

Premier, Medco, and Japex will each hold a third of the company which will subsequently be converted into individually held (16.67%) working interests in the PSC. The operator is of the block is ConocoPhillips (50%).

The block contains undeveloped discoveries on the Alur Siwah, Alur Rambong, and Julu Rayeu fields certified as holding over 650 Bcf gross of proved and probable reserves.

The block offers substantial exploration upside. Around 20 prospects have been identified with total prognosed unrisked reserves of 1.5 tcf gross.

The conversion of the share holdings in the company, to working interests in the PSC is subject to Indonesian Government approvals. Government approvals are not required for the initial sale of shares by ExxonMobil to the consortium.

Premier's Chief Executive, Simon Lockett, said:

'Premier is delighted to announce an acquisition in one of our core areas. The North Sumatra PSC A acquisition builds on Premier's existing business in Indonesia at a low initial entry cost. The block will deliver an increase in mid-term production, and provides an extensive inventory of exploration prospects.'