Premier drills in Vietnam, Philippines

Premier Oil's Chim Ung-1 well in Vietnam has been drilled to a TD of 3,735 m (12,254 ft), penetrating the target Dua reservoirs.

Offshore staff

LONDON -- Premier Oil's Chim Ung-1 well in Vietnam has been drilled to a TD of 3,735 m (12,254 ft), penetrating the target Dua reservoirs.

After encountering good oil shows, wireline logging confirmed 10 m (33 ft) of net oil pay within Upper Dua sandstones and 5 m (16 ft) of net oil pay in a shallower reservoir. The well was sidetracked to drill the adjacent Chim Boi fault block and encountered oil shows.

The reservoir quality is slightly better than expected and the well has confirmed that oil has charged structures in the southern part of Premier's acreage, says Premier.

The well is being P&A'd and the rig will now move to drill the Chim Cong (Peacock) prospect.

As operator, Premier holds a 37.5% interest in block 12W, Santos holds 37.5%, and Delek Energy holds 25%.

"Whilst Chim Ung and Chim Boi may not be commercial on their own, they confirm the oil charge potential across the southern part of block 12W which is very encouraging for our exploration programs here and in our contiguous Block 7/03 acreage" says CEO Simon Lockett.

In the Philippines, Premier's Monte Cristo-1 wildcat exploration well in the SC43 license has completed drilling.

The well encountered the Lower Canguinsa reef objective as planned at a measured depth of 1,628 m (5,341 ft). The reef was found to have good reservoir properties but no hydrocarbons were found. Monte Cristo-1 will be P&A'd.

Premier's costs for the well were fully carried under a 2007 farm-out agreement.

Premier holds a 21% participating interest in the SC43 license. Operator PEARL Oil (Ragay) Ltd. has a 64% interest, and PNOC-EC has a 15% participating interest.

07/09/2008

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