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.