Offshore staff

LONDON -- Premier Oil plc has completed drillstem testing on the Blackbird discovery well (12E-CS-1X) on block 12E offshore Vietnam. Blackbird discovered four oil bearing intervals in the main middle Dua sandstone target in November, two of which have now been tested.

The first zone flowed at 2,177 b/d of oil plus 1.63 MMcf/d of gas through a 44/64" choke with a wellhead pressure of 42.6 bar (618 psi). The second zone flowed oil at 3,706 b/d plus 2.49 MMcf/d through a 64/64" choke with a wellhead pressure of 37.5 bar (544 psi). No water was produced on either test.

When the drillstem test is complete, Blackbird will be sidetracked to obtain further information from the reservoir, which will accelerate appraisal and eventual development.

The Blackbird discovery is 21 km (13 mi) southwest of the Dua discovery announced by Premier in October 2006, for which the commercialization process has already commenced.

Premier has exercised an option to acquire a 45% working interest in and operatorship of block 7&8/97 offshore Vietnam. Block 7&8/97 is in the Nam Con Son Basin, immediately southeast of block 12, where the Dua and Blackbird oil discoveries have recently been announced.

Premier has already worked with its partner, Vietnam American Exploration Co. (Vamex), to acquire, process, and interpret a comprehensive grid of 2D marine seismic data across Block 7&8/97. Data analysis indicates the existence of the same play elements that create petroleum prospectivity in block 12. Seismic interpretation has identified a number of large structures suitable for high-impact well locations, the company says.

Premier operates block 12E with 37.5% interest. The include Santos with 37.5% and Delek Energy with 25% interest. The company has exercised its option on block 7&8/97 in preparation for a full technical and commercial evaluation ahead of the 2008 drilling campaign, the company says.

The transaction through which Premier will acquire operatorship and interest from Vamex is subject to approvals from PetroVietnam and the Vietnam government. Following completion of the farm-in on block 7&8/97, Premier Oil Vietnam B.V. will operate the block with 45% interest. Vamex will hold the remaining 55%.

12/14/2006