Premier Oil updates Indonesian operations

The following is an excerpt from independent oil, gas firm Premier Oil Plc?s ?Exploration Drilling Update? released on August 12, 2011.

Belut Laut-1 (Tuna Block, Indonesia, Premier 65% equity)

The Belut Laut-1 exploration well has reached the planned total depth of 4,948 metres. Oil shows with high gas readings were reported from a depth of 4,740 metres throughout a gross 155 metre Oligocene sandstone interval. However, logs indicated that the sandstones at this depth were of poor porosity. The well will therefore be plugged and abandoned with oil and gas shows.

Belut Laut, along with Gajah Laut Utara-1 and the successful appraisal of the Ca Rong Do discovery (CRD-2x) in Vietnam earlier this year, has confirmed the potential for hydrocarbons within the Oligocene section in the Nam Con Son basin. The ongoing sub-surface interpretation will now be focussed to prospects at shallower depths where good reservoir properties are preserved up dip from proven source rocks. At least five such prospects have been identified in the Tuna acreage and also in the neighbouring Block 07/03 in Vietnam. Premier plans to drill the first of these in the second half of 2012. (end of excerpt)