Premier Oil abandons North Sea well

FTSE 250 oil and gas exploration and production firm Premier Oil has reported that the East Fyne Appraisal well in the North Sea, which it operates, is being plugged and abandoned.

The news comes after the firm encountered 11 feet of gas bearing sand and eight feet of oil bearing sand in the well, the thickness of which was at the lower end of the pre-drill estimate.

The results of the well will be incorporated into the Greater Fyne Area go forward plans and a decision on whether a commercial development is viable for Premier is expected to be taken by the end of the second quarter of 2012.

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Meanwhile, in Indonesia the Anoa development well on Natuna Sea Block A was deepened to investigate the potential of the Lama Formation. The well encountered around 300 feet of tight, but fractured, Lama Formation sandstone. The firm said it is not possible to determine from the existing data whether the fractures contain moveable gas. Subject to partner approval, the plan is to test the Lama interval later this month.

Shares were down 0.84% at 414.7p in early trading.

NR