Premier Oil Reports on Ca Rong Vang Well Offshore Vietnam

Premier Oil has provided an operational update for its Southeast Asian assets.


The Cá Rong Vang well on Block 07/03, offshore Vietnam has been drilled to a total depth of 3980m BRT. The well encountered the Thong Mang Cau, Dua and Cau reservoirs as prognosed. However, wireline logging has been completed and indicates the well has not encountered any significant hydrocarbons. The well is now being plugged and abandoned as planned.


The Kadanwari-19 well, operated by Eni, has encountered 12m of high quality net gas pay in a Lower Guru Sandstone reservoir. The well targeted an undrilled fault compartment and Premier's estimate of gross reserves added by this discovery is 54 bcf, in line with pre-drill predictions. The forward plan is to test the well and complete it as a producer with first gas planned for April 2010.


Premier confirms that it has completed the sale of its 10% interest in the NW Gemsa permit in Egypt to Sea Dragon Energy Inc. The consideration was US $14.8 million after adjustments for working capital. As previously announced, Premier expects to record a profit on sale of around US $9 million.

Simon Lockett, Chief Executive, commented, "After an otherwise successful year with the drill bit it is disappointing that we have not encountered significant hydrocarbons at the Cá Rong Vang location. The well has, however, provided important pressure data which will be key in assessing the discovery we made in June at Cá Rong Do. Further seismic and drilling activity is planned on this large unexplored area. Together with our scheduled North Sea program, we expect to drill at least 10 exploration and appraisal wells during 2010."