Premier updates Indonesian ops

The following is an edited excerpt taken from Premier Oil?s trading and operations update ahead of its 2011 Preliminary Results, which will be announced on 12 July 2011 released on Tuesday on its Indonesian operations. (ed)

Current trading operations

Production
Singapore gas demand continues to grow for our gas exports from the Natuna Sea, with average gas sales under the West Natuna gas contract of 373 bbtud in the first half of 2011 compared to 357 bbtud in the second half of 2010. Block A?s share of the contract amounted to 41 per cent in the period (against a contractual share of 37 per cent), though with a recovery in output from the other two PSC?s participating in the contract, actual levels of production reduced from the prior period. Premier?s production levels will rise in the second half of the year as the Gajah Baru development contributes from October.

Working interest production

?	Estimated 1H 2011 kboepd	Full year 2010 kboepd
Indonesia	?	?
Anoa	8.6	9.2
Kakap	2.2	2.4
Total	10.8	11.6

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	18.5	13.8

Current and future developments
The Gajah Baru project in Indonesia is progressing ahead of schedule. The Central Processing Platform topsides were installed on the jacket on 6 July and the bridge linking this to the wellhead platform was installed on 7 July. Elsewhere on Block A, EPCI technical bids have been received and are under evaluation for the Anoa Phase 4 Development which will add additional compression capacity on the Anoa platform. In addition, the Front End Engineering and Design has been completed for the facilities and pipelines for the Pelikan and Naga fields. These projects are on target for sanction in the fourth quarter of 2011.

In North Sumatra, discussions with the shortlisted facilities EPCI bidders are under way. Technical bids are due in by September and final contract award is expected by year end. First gas on Block A Aceh remains on target for late 2013.

Exploration

Exploration and appraisal programme

Country	Well name	Estimated timing	Licence interest (percent)	Unrisked resource range (mmboe, gross, low-mean-high)
Indonesia	Belut Laut*	Q3 2011	65.00	40-90-200
Indonesia	Anoa Deep*	Q4 2011	28.67	9-11-17
Indonesia	Biawak Besar*	Q4 2011	28.67	11-13-15
Indonesia	Benteng	Q1 2012	30.00	26-77-140
Indonesia	Matang	Q1 2012	41.67	20-40-70

In Indonesia, on the Tuna Block, Gajah Laut Utara was plugged and abandoned in June with oil and gas shows. The Ocean General Rig has now moved to Belut Laut, which spudded on 4 July. The Belut Laut prospect is in a separate sub-basin to that of Gajah Laut Utara and is an independent test of the petroleum system on the Tuna acreage. The results of Belut Laut are expected in August.

Elsewhere in Indonesia the Benteng-1 well on the Buton licence is expected to be drilled in the first quarter of 2012. The Matang-1 well on Block A Aceh is also scheduled to be drilled in the first quarter of 2012. The Antareja Resources land rig, Antareja-8, has been contracted for Matang-1. (end of edited excerpt)