Premier Oil share price: oil and gas discovered at Falklands well

on Apr 3, 2015
Updated: Oct 21, 2019

Premier Oil Plc (LON:PMO) yesterday announced the discovery of oil and gas at Zebedee, Falkland Islands, briefly sending its share price soaring. The company revealed a ‘better-than-expected’ total hydrocarbon net pay of 136 feet, with more ‘good oil shows’ recorded at deeper targets, but the news failed to offer lasting support of Premier’s depressed stock.

Premier’s shares closed down 0.07 percent on Thursday despite climbing in double digits earlier in the session, finishing trade for the week with a 5.3 percent loss at 133.50p. The company underperformed both its benchmark FTSE 250 index and its co-owners of the Falklands license, Falkland Oil and Gas Limited (LON:FOGL) and Rockhopper Exploration Plc (LON:RKH), which added 8.5 and 4.7 percent for the week, respectively.
Premier’s stock is down 20 percent year-to-date and more than 50 percent on an annual basis.
The London-based company said on Thursday that the Zebedee well of the PL004b license, in which Premier has a 36 percent interest, discovered 81 feet of net oil-bearing reservoir and 55 feet of net gas-bearing reservoir, as well as ‘good oil shows’ at undeveloped deeper levels of the Hector fan. The reservoirs are the first major discovery of the exploration expedition, with three more wells to be drilled in the coming months.
The Zebedee will now be plugged and the Eirik Raude exploration rig will be moved to drill the Elaine/Isobel fan complex, with results from that field expected in late April.
“We are delighted to announce the discoveries in the Hector and Zebedee fans. They will add further resource to future phases of development in the area,” Premier exploration director Andrew Lodge commented. “We now look forward to the results of the upcoming Isobel Deep well, potentially the highest impact well in this campaign.”
As of 08:24 BST, Friday, 03 April, Premier Oil PLC share price is 133.50p.

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