Premier plugs East Fyne well
FTSE 250-listed Premier Oil said yesterday it would abandon an appraisal well in the North Sea as it would not be commercially viable to continue.
The East Fyne appraisal well was drilled to a depth of 5,020 feet. It encountered 11 feet of gas bearing sands and eight feet of oil bearing sands – at the low end of Premier’s estimates.
It said in a statement: “The results of the East Fyne Appraisal well will be incorporated into the Greater Fyne Area go forward plans and a decision on whether a commercial development is viable for Premier is expected to be taken by the end of the second quarter of 2012.”
Meanwhile Premier said that in Indonesia, the Anoa development well on Natuna Sea Block had been deepened to a total depth of 11,012 feet to investigate the potential of the Lama Formation.
The next exploration well to be drilled in the Natuna Sea Block A will be at Biawak Besar which is expected to spud in March 2012, the company said in its update.
Shares in Premier Oil closed down 1.1 per cent yesterday at 413.7p.
Antrim, Premier’s partner in the East Fyne well with a 35 per cent stake, saw its Aim-listed shares plunge 22.5 per cent to 70.5p following the news.