LONDON, Aug 17 (Reuters) - British energy explorer Premier Oil Plc (PMO.L: Quote, Profile, Research) said on Thursday it had found new oil and gas at its Dua-4X ST2 well on Block 12E in Vietnam.

However, Premier said technical difficulties meant that the well had to be suspended, and it was subsequently plugged before reaching the main target.

The sidetrack into the southern fault block will now be replaced with a vertical well, Dua-5X, which should take 30 days to drill, Premier said.

"We are encouraged by the discovery of gas in an upper zone of Dua's southern fault block in addition to the earlier discovery of oil and gas in the northern flank," Premier's Chief Executive Simon Lockett said in a statement.

"We look forward to the result of the Dua-5X vertical well, which is targeting oil in the deeper Dua sands," he added.

Analysts said there were grounds for optimism despite the setback.

"Encouragingly, the company sees sufficient promise in the Dua structure to invest in sidetracks and to drill this additional well," Bridgewell Securities analyst Nathan Piper said in a note.

Oriel Securities analyst Richard Rose said that while a re-drill "wasn't ideal", he did not see any material financial impact arising from the technical problems at the Dua-4X ST2 well

The company said that after completing works at the offshore Dua-5X well, it would drill well 12E-CS-1X on its Vietnamese Blackbird prospect.

Premier has previously said the Blackbird structure has the potential for up to 80 million barrels of oil.

Vietnam Blocks 12E and 12W are located in the Nam Con Son Basin, about 400 km (250 miles) southeast of Ho Chi Minh City, close to the boundary with Indonesian territorial water.

The firm said the blocks have a very similar geology to the West Natuna Sea area, around 300 km to the southwest, where it operates of part of the West Natuna Gas Project delivering gas to Singapore.

Block 12E is operated and 37.5 percent held by Premier and includes Australia's Santos, which has a similar-sized stake, and Israel's Delek Energy, which owns a quarter.

Premier, which has prospects in Indonesia, Pakistan, Britain and Mauritania, said last month it produced an average 33,600 barrels of oil equivalent per day in the six months to end-June.

Its shares closed at 972p on Wednesday, valuing the business at around 795 million pounds ($1.5 billion

I had the same news
http://www.saigontimes.com.vn/daily/detail...2757&SoTT=5

Premier finds oil, gas in Vietnam

(SGT-HCMC) British energy explorer Premier Oil has found new oil and gas at its Dua-4X ST2 well on Block 12E off Vietnam’s southern coast.

Premier drilled the Dua 4X vertical well plus sidetrack Dua-4X ST1 and encountered oil and gas within the northern flank of the Dua structure.

It then drilled a second geological sidetrack, Dua-4X ST2, to further evaluate potential gas and oil reserves in the southern fault block.

“We are encouraged by the discovery of gas in an upper zone of Dua’s southern fault block in addition to the earlier discovery of oil and gas in the northern flank,” Premier chief executive Simon Lockett said.

Further work is required to assess the significance of the gas encountered. However, when the well was operating close to the base of the limestone column, technical difficulties were experienced, said the company.

To ensure that the safety of the operation was not compromised, Premier has plugged Dua-4X ST2 and the well will be redrilled as Dua-5X as a vertical well.

Block 12E is located in the Nam Con Son Basin, about 400 km southeast of HCMC, and operated and 37.5% held by Premier and includes Australia’s Santos, which has a similar-sized stake, and Israel’s Delek Energy, which owns a quarter, Reuters reported.

But this is how I read this news

• UK Premier, 37.5% shares
• Australia’s Santos, 37.5% shares
• Israel’s Delek Energy, 25% shares
• Vietnam, 0% shares ???

Johannjs,
We'll get royalties out of that block.

Then we should learn more about those royalties!

I have the number for proven oil reserves of Vietnam to be 3 billions barrels? Does anyone have a different number than that?

The Americans hold no shares , Of Course
in this peaceful zone

LaniKai,

Stop posting off-topic BS in every thread

*put him in ignored members list*

I don't know. Last year I've read that (total capacities of VN oil reserves) somewhere, but just can' find that again. Instead I found this page about VN oil income.
http://www.vneconomy.com.vn/vie/index.php?...&catid=0804

EDIT
Oh, read this story (it's about the Bach Ho oil)
Russia Proves 'Peak Oil' is a Misleading Zionist Scam

Search "vietnamese.oil.reserves"
http://www.google.com/search?num=50&hl...se.oil.reserves

EDIT2
Here are some more links for all those who are interested in OIL

• Extract from the Survey of Energy Resources 2001
• CRUDE OIL AND NATURAL GAS LIQUIDS (in all countries)

Just in: