PPPV to take reduced Vietnam block interest

Pan Pacific Petroleum Vietnam (PPPV) is clear to take a 5% interest in the block 07/03 Production Sharing Contract in the southern Nam Con Son basin from Premier Oil Vietnam South (POVS).

Offshore staff

NORTH SYDNEY, Australia -- Pan Pacific Petroleum Vietnam (PPPV) is clear to take a 5% interest in the block 07/03 Production Sharing Contract in the southern Nam Con Son basin from Premier Oil Vietnam South (POVS).

Under the terms of the original farm-out agreement with POVS, PPPV agreed to acquire a 15% equity in the block by funding part of POVS’ costs of the Cá Rồng Đỏ discovery well, CRD-1, drilled in June 2009.

However, under the terms of the Petroleum Law in Vietnam and the PSC, state company PetroVietnam exercised its right of pre-emption to the extent of 10% of the proposed 15% farm-out interest

Block 07/03 covers 4,915 sq km (1,897 sq mi), in prospective exploration acreage adjacent to block12W, which contains the Chim Sao and Dua oil fields.

CRD-1 established around 90 m (295 ft) of net pay comprising oil and gas in multiple stacked reservoir layers. Two reservoir zones were tested, flowing at a combined rate of 3,265 b/d of oil and 8.1 MMcf/d of gas through a 48/64” choke, with no water produced from either zone.

Premier then acquired 3D seismic over the CRD structure and surrounding area.

Planning is under way for the next exploration phase, which could lead to a well being drilled during 4Q 2010-1Q 2011.

The block also contains several large undrilled leads, which will be matured by further 3D seismic planned for later this year.


07/12/2010

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