Premier targets power plants

Premier targets power plants

SINGAPORE (Dow Jones): Oil and gas exploration company Premier
Oil PLC of the U.K. is targeting East Java power producers to
offtake its proven and probable natural gas reserves estimated at
450 billion cubic feet in East Java's Pangkah block, Simon
Lockett, Premier's commercial manager in Jakarta, told Dow Jones
Tuesday.

"We are in the process of negotiating the sale of gas to
existing power producers currently using high-speed diesel and
fuel oil for their feedstocks," Lockett said.

The proposed gas feed will substitute state-subsidized fuels,
Lockett said.

Premier announced Monday the successful completion of an
appraisal drilling program on Ujung Pangkah field.

The appraisal confirmed reserves for the field of
approximately 450 billion cubic feet of high-energy content
natural gas, known rich gas, with the possibility of developing
additional oil from the structure, Premier said in a statement.

Premier Oil holds a 40 percent majority stake in the Pangkah
production sharing contract. Amerada Hess (Indonesia-Pangkah)
Ltd., a unit of Amerada Hess Corp. has a 36 percent share in the
venture, while the remaining 24 percent is split equally between
Gulf Resources Ltd. and Dana Petroleum PLC.