Premier’s hopes for Oates suffer blow

Premier Oil’s 22/19c-6 exploration well on the Oates prospect in the UK central North Sea has reached target depth of 10,323 feet MD, according to partner Premier Oil.

Offshore staff

LONDON -- Premier Oil’s 22/19c-6 exploration well on the Oates prospect in the UK central North Sea has reached target depth of 10,323 feet MD, according to partner Premier Oil. While the well encountered its target, logs suggest no hydrocarbons were present. It will therefore be P&A’d as a dry hole.

Premier says a full post-drill analysis will assess the remaining potential on the block including the Bowers prospect. The company holds a 50% operated interest in the 22/19c licence.

CEO Simon Lockett said: “The Oates news is disappointing but we continue to believe that the application of regional geology integrated with seismic attribute work will realize further potential in the UK Central North Sea.”

Elsewhere in the region, Premier has entered into a farm-in agreement with Endeavour International, the 100% equity holder of block 15/26c.

Premier will gain a 25% interest by carrying 50% of the costs associated with well 15/26b-1, due to spud later this month to test the West Rochelle prospect. This structure straddles the boundary between block 15/26c and block 15/26b, in which Premier already holds 50% equity.

And in the greater Catcher area, the partners, led by operator EnCore Oil, have targeted Oct. 1 to start their next phase drilling campaign in block 28/9. Premier says progress is being made to contract a rig, with the program including two firm wells and two options.

08/17/2010

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