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Premier Oil makes world-class oil discovery

12 July 2017 09:16

Premier Oil and its JV partners Talos Energy and Sierra Oil & Gas said the Zama-1 exploration well in Block 7, offshore Mexico, has made a world-class oil discovery with an indicated 1bn barrels of oil in place.

The Zama-1 well was the first offshore exploration well drilled by the private sector in Mexico's history. Premier holds a 25% interest in the block.

CEO Tony Durrant said Premier Oil had encountered a very substantial oil bearing interval that indicated more then 1bn barrels of oil in place, a commercial standalone development which adds materially to Premier's portfolio of assets worldwide.

"It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico," said Durrant.

"The oil discovered in the Zama-1 well is an extremely important event for Premier, the joint venture and for Mexico and we look forward to working with the Government and our partners to realise the full potential of this exciting discovery."

Preliminary analysis indicates: - Initial gross original oil in place estimates for the Zama-1 well are in excess of 1 billion barrels, which could extend into a neighbouring block

- A contiguous gross oil bearing interval of over 335 metres (1,100 feet), with up to 200 metres (650 feet) of net oil bearing reservoir in Upper Miocene sandstones with no water contact

- Initial tests of hydrocarbon samples recovered to the surface contain light oil, with API gravities between 28 degrees and 30 degrees and some associated gas

- The well spudded on 21 May 2017 utilizing the Ensco 8503, a moored floating drilling rig. Located in 166 metres (546 feet) of water and approximately 60 kilometres (37 miles) offshore Dos Bocas, it has reached an initial shallow target depth of 3,383 metres (11,100 feet). The Operator is currently setting a liner to protect the discovered reservoirs, prior to drilling deeper exploratory objectives to a total vertical depth of approximately 4,200 metres (14,000 feet).

At 9:16am: (LON:PMO) Premier Oil PLC share price was +12.5p at 58.75p

Story provided by StockMarketWire.com

Related Company: PMO

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