New oil and gas discoveries are a welcome boost for Premier

Suzie Neuwirth
FTSE 250-listed Premier Oil yesterday announced a strong start to its exploration programme with new oil and gas discoveries.

The company said that its Bonneville exploration well and side track, located off the UK Central North Sea, had discovered oil, while its Matang well in Indonesia had discovered new gas reserves.

It also said that it had started testing of its Norwegian oil well Luno.

Premier estimates it has around 30m barrels of oil in place from the Bonneville discoveries, which is in line with pre-drill predictions.

“We are delighted with the strong start to our 2013 exploration drilling programme with the previously announced discovery at Luno II and now the discoveries at Bonneville and Matang,” said chief executive Simon Lockett.

Broker Numis said that it sees a buying opportunity in Premier Oil after recent share price weakness, following the news.

Premier Oil’s shares closed at 365.8p yesterday.