Premier Oil abandons dry well in the UK

Exploration and production company Premier Oil has plugged and abandoned two wells but says that one could potentially be commercial.

The Coaster exploration well in Block 28/10 in the UK reached a total depth of 5,684ft but is now being plugged and abandoned as a "dry hole", the company said in a statement on Monday morning.

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Premier's Chief Executive Officer Simon Lockett admitted that the well was assessed as "very high risk pre-dill", leading the company to take a precautionary farming-out of 50% of its equity.

Operations in the North Sea will continue with the Spaniards East well on Block 15/25a due to spud in September.

Over in Indonesia, Premier's Benteng-1 exploration well on the Buton Block in which the company owns a 30% equity interest, reached a total depth of 12,424ft and is being plugged and abandoned as "a small but potentially commercial oil discovery." Good oil shows were seen over a 111ft interval from a depth of 2,375ft and initial log analysis indicates a 15ft oil-beating Tertiary limestone reservoir.

Lockett said: "The Benteng-1 results are encouraging as theyhave established a working petroleum system ina previously unproven basin."

The group's next exploration well in Asia, the Chim Sao Northwest appraisal well, is due to spud in July.

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