Prospecting in Guinea Bissau costs Premier Oil US$25.7 million so far

21 September 2007

London, United Kingdom, 21 Sept – Oil exploration work in Guinea Bissau has cost British oil company Premier Oil US$25.7 million so far, without any positive results, the company said in London Thursday.

The half-year report said that the second well surveyed, “Eirozes 1,” had already been sealed off and abandoned, after no results during the work carried out.

The first well, Espinafre-1, was sealed and abandoned in March, after the work failed, “for geological and operational reasons.”

Also according to the statement form the company, the cost of the work – US$25.7 million – were written off with the sale of the stake in the Esperança bloc to partner company Sterling Energy.

Streling exercised a buy option of 5 percent, with Premier now owning 30.5 percent, which is the same size as the stake it owns in Sinapa, of which it is also the concession-holder.

After acquiring seismic information about Guinea Bissau’s offshore area last year, the oil company re-started exploration in the area where it is the concession-holder of the Esperança and Sinapa fields, in the Casamaça-Bissau sub-basin.

These fields have a total area of over 5,800 square kilometers, with depths of between 10 and 2,000 meters. (macauhub)