Premier finds RI oil, gas

Premier finds RI oil, gas

LONDON (Bloomberg): Premier Oil Plc, a UK oil exploration
company, said on Tuesday an exploration well it drilled with its
partners in the Pangkah area, off the coast of Indonesia, tested
successfully for both oil and natural gas.

The Ujung Pangkah No. 1 exploration well produced oil at a
rate of 987 barrels a day and gas at a rate of 20 million cubic
feet per day, when tested. The success of the well increased the
likelihood of similar geological structures in the same area also
containing oil and gas.

"The successful results from the Pangkah well add to the
unprecedented exploration success the company has enjoyed this
year," said Premier Oil Chief Executive Charles Jamieson.

Premier has postponed developing its less lucrative oil fields
and oil prospects this year, because of the 40 percent slump in
oil prices during the past 12 months. Besides the latest
discovery, Premier has also found gas in Pakistan and in another
offshore Indonesian oil block.

Premier is the operator of the Pangkah area, with a 40 percent
stake. Its biggest partner is Amerada Hess Corp., which has a 36
percent stake, while Dana Petroleum Plc and Gulf Indonesia
Resources Ltd. both have 12 percent stakes.