Premier Oil reports good flow rates from Cá Rồng Đỏ discovery, Vietnam

FTSE 250 oil and gas explorer and producer, Premier Oil (LSE: PMO) reported further good news from its exploration activities in Vietnam. At the Cá Rồng Đỏ discovery well on Block 07/03, offshore Vietnam, Premier reported that it had tested the first two reservoir zones, which flowed oil at a combined rate of 3,265 barrels of oil per day plus 8.1 million standard cubic feet of gas per day through an 48/64' choke. No water was produced from either zone.

Premier has a 30% interest in the well, and is operator of Block 07/03 which covers 4,915 km2 in the Nam Con Son Basin, and is adjacent to Block 12W which contains Premier's Chim Sáo and Dua Oil Fields. Pitkin Petroleum, Pearl Oil and Pan Pacific Petroleum hold the remaining 70%.

"We are delighted to have encountered hydrocarbons, both oil and gas, with our first well on Block 07/03, giving us encouragement that we have a working hydrocarbon system within this large under-explored area of the Nam Con Son Basin," Simon Lockett, Chief Executive, commented. "Given numerous leads and prospects in this and our adjoining acreage, we look forward to an active seismic and drilling programme as a follow up to this success."

Premier Oil now plans to conduct a 3D survey to define the resource potential of the Cá Rồng Đỏ discovery and adjacent structures, and a second exploration well is planned on the block in Q4 2009.

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