Premier reports the following in relation to its operations in PSC Area B offshore Mauritania. The 'Stena Tay' drill rig finished wireline log acquisition on Labeidna-1 exploration well, including the recovery of oil and rock samples to surface. The well was plugged and abandoned as planned. The 'Stena Tay' drill rig was released on 20 November 2005 to drill a well for another operator.
Preliminary evaluation of the data acquired in Labeidna-1 indicates that the well intersected a gross oil bearing interval of 116 metres, comprising a series of thin but high quality sands interbedded with claystones. Interpretation of image logs and magnetic resonance logs and other analytical work is continuing to quantify the total net pay thickness. These results will be incorporated into an assessment of the commercial potential of the Labeidna accumulation.
Simon Lockett, Chief Executive, commented: "An oil discovery within tie-back distance to the Chinguetti field is a positive result. Work is proceeding towards a decision on the next steps to determine if commerciality can be achieved."