Premier Oil Vietnam South B.V. (Premier), the operator of the Block 07/03 Production Sharing Contract, has advised that the CRD-2X-ST appraisal well operations have been successfully completed and that the CRD-2X well will now be plugged and abandoned as planned.

The CRD-2X appraisal well was spudded by the semi-submersible drilling rig the Ocean General on Thursday, February 10. The well was planned to evaluate the oil and gas discovered in multiple stacked Miocene and Oligocene reservoir sands by CRD-1X in 2009 with the aim of reducing uncertainty in whether the CRD (Cá Rong Ðo) structure contains sufficient volumes to support a potential development. CRD-1X tested two zones in the Miocene sands which flowed oil at a combined rate of 3,265.4 BOPD plus 8.1 MMSCFD, through a 48/64" choke, with no water. However, it was not possible to flow test the Oligocene sands at that time.

CRD-2X reached a total depth of 3,785 m BRT on March 10, and following evaluation of the section by logging, drill stem tests of two reservoir zones in the Oligocene section were conducted. The first zone tested flowed gas and condensate at rates of 9.7 MMSCFD and 870 BOPD respectively through a 40/64" choke. The second zone tested flowed gas and condensate at rates of 17 MMSCFD and 1730 BOPD respectively through a 56/64" choke. The total net condensate/gas pay in this well was 72m, a significant increase compared with the 17 m of net pay penetrated in the Oligocene section in the up dip CRD-1X well.

CRD-2X was subsequently sidetracked to further evaluate the distribution of hydrocarbons in the Miocene sands. This sidetrack well CRD-2X-ST reached its planned total depth of 3,340 m BRT in the Miocene section and intersected 18.3m of net oil pay in the Miocene sands. This compares with 34.4m of net oil pay intersected in the Miocene section in the up dip CRD-1X well, and 3.8m in the down dip CRD-2X well.

These well results, including strong flows from the Oligocene sands have provided important information that will assist in the assessment of the resource potential of the CRD structure. The Operator will now undertake further studies to determine the feasibility of a commercial development.

Partners in the Vietnam Block 07/03 are:

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

Tags: Premier Oil