Premier Oil discovers oil at Bonneville and gas at Matang

published 23 April 2013

FTSE 250-listed exploration and production company Premier Oil has discovered oil at Bonneville in the UK and gas at Matang in Indonesia.

The company reported that oil had been discovered at the Bonneville exploration well and its side track.

The Bonneville prospect is located four kilometres south of the Burgman discovery on the Catcher licence in the UK Central North Sea.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The company said that the Bonneville discoveries were in "excellent quality reservoirs" with "average porosities of approximately 30%".

The estimated oil in place from the Bonneville discoveries was approximately 30m barrels, in line with pre-drill predictions.

In addition to the oil discovery at Bonneville, the company said that the Matang-1 exploration well in Indonesia, in which Premier has 41.67% equity, had discovered gas and would be tested.

The company said that testing of the Luno II discovery in Norway, in which Premier has 30% equity, had commenced and results would be expected before the end of the month.

Simon Lockett, Chief Executive Officer, commented: "We are delighted with the strong start to our 2013 exploration drilling programme with the previously announced discovery at Luno II and now the discoveries at Bonneville and Matang."

He added: "We look forward to the outcome of the test programmes at Luno II and Matang while the Bonneville discoveries will be tied back to our important Catcher area development, which is targeted for project sanction by year-end."