Premier Oil PLC Post-appraisal significant Zama resource upgrade (5750D)

TIDMPMO

RNS Number : 5750D

Premier Oil PLC

27 June 2019

Premier Oil plc

("Premier")

Significant resource upgrade at Zama following conclusion of appraisal campaign

27 June 2019

Premier is pleased to announce that it has significantly increased its resource estimate of the Zama field offshore Mexico, following its evaluation of the data acquired from the highly successful Talos Energy-operated Block 7 Zama appraisal campaign. The campaign comprised two appraisal wells (Zama-2 and Zama-3) and a vertical side-track (Zama-ST1) which was flow tested.

The latest appraisal well, Zama-3, has proven the lateral continuity of the reservoir 2.4 kilometres to the south of Zama-1 with the quality of the reservoir sands encountered at the upper end of expectations.

A comprehensive set of data was acquired during the campaign, including high resolution wireline logs, extensive fluid sampling and pressure data, together with the recovery of over 400 metres of core and a drill stem test to confirm well productivity.

The data has demonstrated reservoir properties at the upper end of expectation, including a higher net-to-gross ratio, better porosity and increased hydrocarbon saturation. This has resulted in a higher estimated oil-in-place and ultimate recovery from the Zama field. Consequently, Premier has refined its gross resource estimate of the Zama structure to 670-810-970 mmboe (P90-P50-P10).

Tony Durrant, CEO, commented:

"We are delighted with the results of the latest Zama appraisal well which, together with the positive results from the earlier appraisal wells, has caused us to significantly upgrade our resource estimates of the Zama structure. Our focus now turns to selecting the optimal development for the field, ahead of taking a final investment decision next year."

Enquiries

Premier Oil plc

Tony Durrant, Chief Executive

Robin Allan, Director North Sea and Exploration

Dean Griffin, Head of Exploration

Tel: [phone]

Camarco

Billy Clegg

James Crothers

Tel: [phone]

Notes to editors

The Block 7 consortium comprises Talos Energy (35 per cent), Wintershall Dea (40 per cent) and Premier (25 per cent).

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June 27, 2019 02:01 ET (06:01 GMT)