26-06-09 A Premier Oil-led group found oil and gas off the coast of southern Vietnam in its first well in the area, as the UK company seeks to build on earlier drilling success in the Southeast Asian nation.
Testing at two reservoir zones in Block 07/03 produced flows at a combined rate of 3,265 barrels of oil and 8.1 mm cf of gas a day, Premier said. The London-based explorer has previously said the Chim Sao and Dua fields, located in an adjacent block, are commercially viable.

The Premier-led group, which also includes Vietnam American Exploration, Australia's Pan Pacific Petroleum and a unit of Abu Dhabi-based Mubadala Development, began drilling the Ca Rong Do exploration well in Block 07/03 in May. The area was opened up for drilling by a 2003 accord between the Indonesian and Vietnamese governments.
"The flow rates are similar to what Chim Sao flowed in testing," Phil MacLaurin, Vietnam country manager for Premier, said. "That is good news because it shows that reservoir-quality sandstones are present."

The prospect targeted by the Ca Rong Do well may hold 80 mm barrels, Pan Pacific Petroleum said in a May presentation.
"It's a good result," Nathan Piper, an Edinburgh-based analyst at RBC Capital Markets, said. "It's a decent test rate and proves there's oil in the area, and they've got other prospects to drill. That's a good position to be in."

No water was found in either zone as the explorers drilled to a depth of 3,810 meters (12,500 feet), according to Premier, which said the partners now plan a three-dimensional survey to define the resource potential of the find and adjacent prospects.
"We wouldn't invest in a 3D seismic survey if we didn't think an area had future potential," MacLaurin said. "That is additional work that we're planning as a consequence of this success."

The area of the Nam Con Son Basin, where drilling took place, is "under-explored" and has "numerous leads and prospects," Premier Chief Executive Officer Simon Lockett said in the statement, adding that the company is planning an "active" seismic and drilling program.
A second exploration well is planned for the fourth quarter, Premier said.