Premier Turns on Taps at Shelley in UK North Sea

Premier announced that oil production from the Shelley field commenced today from the first of two wells. The second well is expected to come on-stream within the next 48 hours.

Premier is the operator of the field with 100% equity, which it acquired as part of the acquisition of Oilexco North Sea Limited ("ONSL") in May this year.

The Shelley field was discovered in 1984 by the 22/2-2 well and is located in 95m of water approximately 40 km south of the Premier-operated Balmoral complex. The field is located in a Palaeocene Forties reservoir and contains 31 degree API oil.

The field has been developed using two horizontal subsea production wells equipped with downhole electric submersible pumps. The wells are connected via a short flowline, and a control umbilical, to the Sevan Voyageur FPSO.

Simon Lockett, Chief Executive Officer, commented, "Prior to Premier's acquisition of ONSL, the development of the Shelley field had been stopped and the contract with Sevan had been terminated. I am delighted that we have been able to negotiate a new contract with Sevan and, with the support of our key suppliers, restart the development, achieving first production so soon."