Premier Oil PLC (LON:PMO) has completed the Zama-1 exploration well, offshore Mexico, and has confirmed the potentially very significant new discovery.
In a multi-project drilling update, the oil company told investors that the deeper targets were not found to contain hydrocarbons, confirming pre-drill expectations, and that the well was completed on time and within budget.
READ: Premier Oil's Mexico discovery could be ‘company defining’ but debt reduction should be the focus - Barclays
Zama-1 was drilled to a total of 4,108 metres and it encountered a gross oil column of 335 metres, measuring down to a depth of 3,380 metres without hitting an oil-water contact.
Premier confirmed its prior estimate that the Zama discovery has more than 1bn barrels of gross oil-in-place. The company, along with partners Talos Energy and Sierra Oil & Gas, is now carrying out further analysis of the well data, in order to evaluate the possible appraisal and development plans.
New producer added at Anoa field
Elsewhere, the company has also now completed drilling of a development well at the Anoa project, which is expected to be online as a producer in early August.
The well, Anoa WL-5X, was flow tested at a rate of 28mln cubic feet per day, significantly above the 18mln anticipated pre-drill, and the company expects longer term production will help prove-up production estimates for the field’s deeper zones.
Anoa WL-5X alone is estimated to host some 75bn to 100bn cubic feet of gas reserves, the company added.
Catcher nearing ‘first oil’
Closer to home, Premier Oil said it has now completed the Burgman (B12) injection well, which is part of the Catcher development project. It highlighted that this is the last of twelve wells required ahead of ‘first oil’ – which will come once two more existing well are ‘tied in’.
The well is currently ahead of schedule and budget, it added.
Once the present programme is completed, the rig will move on to drill a new set of four Catcher production wells.