More on Premier Oil
Premier Oil: Oil discovery
Premier Oil announced an oil discovery with the Al Amir-1 farm-in well, its first exploration well in Egypt. The well is both shallow and close to existing infrastructure which means it will be cheap to develop. It expected to deliver 750 barrels of oil per day (bopd). Premier will not use this well for immediate production but intends to suspend this well as a potential future producer.
Premier has a programme of drilling up to 16 exploration and appraisal wells in 2005. So far this is the second successful well result announced by the company this year, the first being a successful test of the Tiof-6 well in Mauritania which flowed at a stable rate of 9,150 bopd.
Premier intends to appraise the discovery to determine reserves as well as explore ‘the other plays on this acreage.’
The stock is on a relatively high prospective PE (on 2005 earnings) of 17.6× at the current price of 588p. Our previous piece on Premier looks at the company in more depth.
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