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Premier: First Oil From Dua Field In Mid-2014

|Includes:Premier Oil plc (PMOIF), STOSF

Premier Oil announced that is on-track to produce first oil in mid-2014 from the Dua project in Block 12W, Nam Con Son Basin off Vietnam. The average gross production rate is estimated to be 8 Mbbl/d for the first 12 months of production.

In Jun-2006, Premier drilled its first operated well in Vietnam, successfully appraising the Dua discovery. The company subsequently drilled the Dua-5X vertical well to evaluate the adjacent southern fault block which intersected multiple oil and gas reservoirs. The well was successfully tested in Oct-2006.

After defining Dua's field development plan, a tie-in to the Chim Sáo Field was approved by the Government of Vietnam in Dec-2011. Subsea installations were completed in 2013 and tied back to the Chim Sáo FPSO via flowlines and umbilicals. Development drilling is underway with the first two wells spudded.

Block 12W ownership: Premier (53.125%, operator), Santos (31.875%) and PetroVietnam (15%).

In July-2013, Premier Oil announced that the 121-CV-1X exploration well, offshore East Vietnam, encountered gas.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: PMOIF, STOSF