Premier Oil reveals “excellent” appraisal well result at Zama discovery

"This is an excellent start to the Block 7 Zama appraisal programme in Mexico,” said Tony Durrant.

Premier Oil plc has revealed what are deemed as excellent appraisal well results from its large Zama oil discovery offshore Mexico.

The Zama-2 appraisal well encountered the target reservoir on prognosis, measuring some 152 metres of net pay above the oil-water contact point. The result was positive and expected.

At the same time, the ratio of net pay versus gross pay was 73% which is higher than at Zama-1 and the result was better than pre-drill expectations.

Premier confirmed that the quality of the encountered oil was similar to Zama-1, as predicted, and operations will now continue with side-track drilling before a flow testing operation.

It added that the programme is presently ahead of schedule and under budget.

"This is an excellent start to the Block 7 Zama appraisal programme in Mexico,” said Tony Durrant, Premier chief executive.

“It enhances our interpretation of the large Zama discovery and increases our confidence in our resource estimates. 

“We now look forward to the results of the drill stem test of the Zama-2 side track."

Source: www.proactiveinvestors.co.uk