Premier commences exploration drilling at Natuna Sea

UK independent oil, gas firm Premier Oil said on Wednesday it was set to commence drilling of an exploration well in Natuna Sea block A PSC.

?The rig for the Macan Tutul exploration well is on location. This well will assess the gas potential of the upper and middle Arang zones and deeper oil potential in the same area,? the company said in a statement. The company said that future development of the Macan Tutul is envisaged as tie-back to the nearby Anoa facilities. The company did not give detail about the planned depth of the well or the duration of the drilling.

Following on from Macan Tutul the rig will move to the Lembu Peteng structure adjacent to the Kakap field.

Meanwhile, the company said the construction of the West Lobe platform is ahead of schedule and within budget. A drilling rig has been secured for development drilling this summer and first gas from the facility is targeted for Q3 2006. West Lobe platform is part of the Anoa field, which currently exports some 170 MMCFD of gas through pipeline to Singapore. Average gas price to Singapore during 2005 is US$7.90 per MCF.

Premier holds a 28.7 percent interest and operatorship in the block, while the other participants, Kufpec of Kuwait, Amerada Hess, and Malaysia?s Petronas hold 33.3 percent, 23 percent, and 15 percent, respectively. Premier also has 18.75 percent working interest in the nearby Kakap PSC.(alex)