PMO.L Regulatory News (PMO)

PREMIER OIL PLC

("Premier")

Exploration and Development Drilling Update

31 July 2017

Zama-1 exploration well

The Zama-1 exploration well offshore Mexico, has now completed drilling operations in the final hole section, reaching a total depth of 4,108 metres (13,478 feet). The logging results confirmed that the previous hole section had reached the base of the reservoir section, with an oil-down-to in the well of 3,380 metres (11,089 feet) with no subsequent penetration of an oil-water-contact. The well drilled deeper into the Zama Deep target and no additional hydrocarbons were encountered, confirming pre-drill expectations for this formation. 

Premier's estimate of the initial gross oil in-place volumes for the reservoir is, as previously announced, in excess of 1 billion barrels of oil. The gross oil bearing interval in Zama-1 is over 335 metres (1,100 feet). The well was completed on time and budget and has been suspended as a potential producer.

Premier, together with its joint venture partners Talos Energy (Operator) and Sierra Oil & Gas is now undertaking analysis of all the data gathered from the Zama-1 well and evaluating the best way to appraise and then develop this world class discovery.

Anoa development well (WL-5X)

In Indonesia, the Premier- operated Anoa development well (WL-5X) has been completed and the well will be brought on production in early August. The well achieved an equipment limited flow rate of 28mmscf/d, significantly higher than the 18mmscf/d rate achieved with the original well test, and estimated reserves for this well alone are approximately 75-100 Bcf. The outcome of the long-term production test from this well will help to prove up the production contribution from the deeper zones within the Anoa field.

Catcher development drilling

On the Premier-operated Catcher project the current well, a Burgman field injection well (B12) has been drilled and is currently being completed. This is the last of the twelve wells scheduled for completion pre-first oil. As with other wells in the programme, the well is currently ahead of time, under budget and with reservoir result ahead of prognosis. Ten of the twelve wells have been tied in, with the final two tie-ins scheduled ahead of first oil from the field. Once the current well is completed, the Catcher project will have delivered four wells on each of the Catcher, Varadero and Burgman fields ahead of schedule and the rig will then be moved back to Catcher at the end of August for the next batch of four production wells.