Premier Preparing to Spud CRD-2X Well in Block 07/03

Premier Oil Vietnam South B.V., the operator of Block 07/03, have advised that the semi-submersible drilling rig the "Ocean General" is on location and is preparing to start the drilling of the CRD-2X appraisal well.

CRD-2X will evaluate the oil and gas discovered in multiple stacked reservoir layers by CRD-1X drilled in 2009, and has been planned to reduce uncertainty in whether the CRD structure contains sufficient volumes to support a potential development. Premier report the estimated mid-point of the discovered resources at 60 MMboe.

The CRD-1X well tested two of these reservoir zones which flowed oil at a combined rate of 3,265.4 barrels of oil per day plus 8.1 million standard cubic feet of gas per day, through a 48/64" choke. No water was produced from either zone.

Partners in the block are:
Pan Pacific Petroleum (Vietnam) Pty Ltd (a wholly owned subsidiary of Pan Pacific Petroleum NL) 5%; Premier Oil Vietnam South B.V. (Operator) 30%; Vietnam American Exploration Company, LLC. (a wholly owned subsidiary of Pitkin Petroleum Plc) 40%; PearlOil (Ophiolite) Ltd. 15%; and PetroVietnam Exploration and Production Corporation Ltd 10%.