Premier to commence drilling campaign at Anoa field offshore W. Natuna

UK-based independent oil and gas producer Premier Oil plans to commence a drilling program at its Anoa field of the Natuna Block A production sharing contract (PSC) offshore West Natuna between May 15 and July 1 2004.

According to Premier?s bidding invitation released on Friday, the program includes the drilling evaluation of one firm plus one optional exploration well. ?The duration of the firm program is estimated at 70 days with a maximum duration of 130 days if the optional work is performed,? Premier said.

Premier added it would use drilling rig jack up to carry out the drilling program since all wells are located in water depths ranging from 240 ? 270 feet.

Anoa field currently produces around 7,770 barrels of oil equivalent per day (net to Premier). Gas from this field, together with others PSCs in West Natuna area, is exported to Singapore through a 650-km pipeline, the West Natuna Transportation System.

Premier Oil earlier said that it would conduct a reappraisal of the remaining potential of the block following unsuccessful drilling of two exploration wells, Kuda Nil-1 and Binturong-1, with hydrocarbon shows, but the reservoir sandstones encountered are not considered to be of sufficient quality to be commercial.

Premier Oil holds a 28.7 percent interest and operatorship in Natuna Block A, while the other participants, Kufpec of Kuwait, Amerada Hess, and Malaysia?s Petronas hold 33.3 percent, 23 percent, and 15 percent respectively. (robert)