Premier Oil confirms spudding of Zama-1 exploration well

Josh White Sharecast | 22 May, 2017 09:13 | | |

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Premier Oil announced on Monday that the Zama-1 exploration well in Block 7 in the shallow water Sureste Basin, offshore Mexico, was spudded at 0630 local time on 21 May.

The London-listed firm holds a 25% equity interest in Sureste’s Block 7.

It said it was the first exploration well to be drilled on acreage awarded in Mexico's first international licensing round in 2015.

“The well's principal target is the low risk Zama prospect with supportive direct hydrocarbon indicators in the Tertiary clastic reservoirs,” Premier’s board said in its statement.

“The Zama structure is estimated to have a P90-P10 gross unrisked resource range of 100-500 mmbbls.

“The well is expected to take up to 90 days to drill both the Zama prospect and the secondary target, Zama Deep, at a total cost to Premier of $16m.”

The partners in Block 7 are Talos Energy - the operator, at 35% - Sierra Oil and Gas at 40%, and Premier at 25%.

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