Premier Oil updates Indonesian operations

The following is an excerpt from independent oil, gas firm Premier Oil Plc?s ?trading and operations update? released on January 19, 2012. (ed)

Production Operations

	Estimated full year 2011 kboepd	Full year 2010 kboepd
Indonesia
Natuna Sea Block A	9.3	9.2
Kakap	2.1	2.5
Total	11.4	11.7

Oil and gas pricing
The average oil price realised for the first half of 2011 was $112.06 per barrel (1H 2010: $77.9 per barrel) compared with an average Brent crude price of $111.1 per barrel for the period.

Average gas prices for the principal gas producing areas for the period were:

$/mcf	2011	2010
Indonesia	19.5*	13.9
* Relevant hedges resulted in a cash cost of $17.8 million

Current and future development projects
The Anoa Phase 4 project was sanctioned in November and the EPCI contract has been awarded. The project is expected to be completed during 2013 and will develop around 200 bcf of undeveloped proven reserves, through increasing the Anoa compression capability. Project sanction for the Pelikan and Naga fields is planned for the end of the first quarter of 2012, with first gas expected during 2014. Elsewhere in Indonesia, the operator of Block A Aceh (Premier 41.67 per cent interest) is targeting project sanction in the first half of the year.

Exploration and appraisal

Country	Well name	Estimated timing	Licence interest (percent)	Unrisked resource range (mmboe, gross, low-mean-high)
Indonesia	Anoa Deep*	Q1 2012	28.67	9-11-17
Indonesia	Biawak Besar*	Q1 2012	28.67	11-13-15
Indonesia	Benteng-1	Q2 2012	30.00	28-76-139
Indonesia	Matang	Q3 2012	41.67	18-40-73

In Natuna Sea Block A, the Anoa Deep well is currently drilling and the results are expected at the end of this month. Once completed, the rig will move to drill the Biawak Besar prospect. Elsewhere in Indonesia the Benteng-1 well on the Buton licence is expected to spud in the second quarter of 2012 and the Matang-1 well on Block A Aceh is expected to spud in the third quarter 2012. (end of edited excerpt)