Premier Oil encouraged by well result

Energy firm Premier Oil has had an encouraging drilling result on the Carnaby exploration well 28/09-5A in the Central North Sea Block 28/9.

Initial analysis indicates that the well encountered 51 feet of net oil in the main Tay sandstone within an estimated 86 feet oil column.

Pressure data and sampling indicates that the API (American Petroleum Institute) gravity of the oil is 24 degrees and is of similar quality to that established at the nearby Catcher discoveries.

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The oil water contact was at the shallower end of expectation, said Premier, which has a 50% interest in the well. The well also encountered 51 feet of Cromarty sands but these were shown to be water wet on the logs.

The high quality data acquisition from the well will now be used to determine what contribution the Carnaby discovery will make to the overall Catcher development. The well will be plugged and abandoned ahead of the rig moving to drill the high risk Coaster prospect on Block 28/10a, immediately east of the Catcher acreage.

Simon Lockett, Chief Executive Officer of Premier, described the discovery as "encouraging".

Cairn Energy, through its fully-owned subsidiary Agora Oil and Gas AS, has a 15% interest im the well.

JH