Premier Oil reports disappointing results of Natuna Sea exploration campaign

UK Independent oil company Premier Oil reported Friday that following drilling in the eastern part of Block A PSC in the Natuna Sea; Kuda Nil-1 and Binturong-1 exploration wells have both been plugged and abandoned, with hydrocarbon shows, but the reservoir sandstones encountered are not considered to be of sufficient quality to be commercial.

Kuda Nil-1 encountered over 1500 feet gross interval of hydrocarbon bearing sands. Samples of gas and oil were recovered by wireline test. Binturong-1 also encountered gas and oil over a significant interval. Both of the wells demonstrate oil charge and there will be a reappraisal of the remaining potential of the block, said Premier.

Block A PSC is operated by Premier Oil with 28.67 percent working interest, while Kuwaiti?s KUFPEC, Amerada Hess and Petronas hold 33.33 percent, 23 percent and 15 percent, respectively. (alex)