LONDON – Premier Oil expects to participate in its first exploration well offshore Mexico this year.
Last month the company exercised an option to increase its interest in block 7 to 25%, subject to approvals. Recently reprocessed seismic over the block confirmed the potential of the Zama prospect, a three-way dip structure sealed against a salt feature.
The estimated resource range for Zama is 100-500 MMboe (in line with released CNH estimates). The joint venture partners plan to spud the Zama well this spring, with initial results expected within 50 days of spudding.
Elsewhere, Premier has exited block FZA-M-90 in the Foz do Amazonas basin, subject to ANP approval. It plans instead to focus Brazilian exploration on the Ceará basin.
Off the Falkland Islands, the company has worked with its FEED contractors and potential well services and logistics contractors to optimize facilities design and installation of the Sea Lion field facilities.
As a result the project’s estimated breakeven price is now down to $45/bbl. The focus now is on progressing commercial and fiscal issues and securing finance to allow the project to move toward sanction.
Offshore Indonesia, the company expects to take a final investment decision soon on development of the Bison, Iguana and Gajah Puteri gas fields to support existing long- term sales contracts to Singapore.
It also anticipates formal approval later in the quarter for a three-year extension to its offshore Tuna exploration license.
At the Chim Sáo field offshore Vietnam, uptime last year was more than 90%, with better than expected reservoir performance and a successful well intervention program helping to mitigate natural decline.
A two-well infill drilling program this August should help maximize production.