Premier Oil PLC Significant new oil discovery offshore Mexico (8116K)

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RNS Number : 8116K

Premier Oil PLC

12 July 2017

PREMIER OIL PLC

("Premier")

Significant new oil discovery offshore Mexico

12 July 2017

Premier, together with its joint venture partners Talos Energy (Operator) and Sierra Oil & Gas, is pleased to announce that the Zama-1 exploration well in Block 7, offshore Mexico, has made a world class oil discovery. The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico's history. Premier holds a 25 per cent interest in the block.

Preliminary analysis indicates:

 
      --   Initial gross original oil in place estimates 
            for the Zama-1 well are in excess of 1 billion 
            barrels, which could extend into a neighbouring 
            block 
      --   A contiguous gross oil bearing interval of 
            over 335 metres (1,100 feet), with up to 
            200 metres (650 feet) of net oil bearing 
            reservoir in Upper Miocene sandstones with 
            no water contact 
      --   Initial tests of hydrocarbon samples recovered 
            to the surface contain light oil, with API 
            gravities between 28deg and 30deg and some 
            associated gas 
 

The well spudded on 21 May 2017 utilizing the Ensco 8503, a moored floating drilling rig. Located in 166 metres (546 feet) of water and approximately 60 kilometres (37 miles) offshore Dos Bocas, it has reached an initial shallow target depth of 3,383 metres (11,100 feet). The Operator is currently setting a liner to protect the discovered reservoirs, prior to drilling deeper exploratory objectives to a total vertical depth of approximately 4,200 metres (14,000 feet).

Tony Durrant, Chief Executive, commented:

"We are delighted to be announcing this significant new oil discovery offshore Mexico. We have encountered a very substantial oil bearing interval which indicates over 1 billion barrels of oil in place, a commercial standalone development which adds materially to Premier's portfolio of assets worldwide. It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico.

The oil discovered in the Zama-1 well is an extremely important event for Premier, the joint venture and for Mexico and we look forward to working with the Government and our partners to realise the full potential of this exciting discovery."

 
 Enquiries 
 Premier Oil plc                 Tel: [phone] 
 Tony Durrant, Chief Executive 
 Robin Allan, Director North 
  Sea and Exploration 
 
 Bell Pottinger                  Tel: [phone] 
 James Henderson 
  Henry Lerwill 
 

Premier will issue a Trading and Operations Update tomorrow which will be followed by a conference call at 9.30 a.m. for analysts and investors, to discuss both the Update and the Zama discovery. Details are as follows:

   Dial in number:    [phone]          Password:             Premier Oil 

A short presentation will be available on the Company's website before the call.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 12, 2017 02:00 ET (06:00 GMT)