Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Premier Oil surges as it hits ‘world class’ discovery offshore Mexico

“We have encountered a very substantial oil bearing interval which indicates over 1 billion barrels of oil in place"
Offshore oil operations
Zama-1 has so far found 200 metres of net oil reservoir

Shares in Premier Oil PLC (LON:PMO) rocketed after the mid-cap producer announced a new “world class” oil discovery offshore Mexico, with the Zama-1 exploration well unearthing an estimated 1bn barrel find.

The well hit a gross oil bearing interval spanning 335 metres, with up to 200 metres of net oil bearing reservoir. Light oil has so far been recovered to surface.

Premier and its partners are now setting a liner to protect the discovered reservoirs, before drilling deeper to test other exploration objectives.

WATCH: Premier Oil's offshore Mexico discovery 'a world class success' - CEO Tony Durrant

"We are delighted to be announcing this significant new oil discovery offshore Mexico,” said chief executive Tony Durrant.

“We have encountered a very substantial oil bearing interval which indicates over 1 billion barrels of oil in place, a commercial standalone development which adds materially to Premier's portfolio of assets worldwide.

“It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico.”

Shares surged by 39% throughout Wednesday trading to 64.2p.

--Updates for share price--

View full PMO profile View Profile

Premier Oil PLC Timeline

Related Articles

oil well onshore
March 09 2017
Cantor Fitzgerald starts off its coverage of the junior oil firm with a ‘buy’ recommendation.
UtilityMeter.jpg
November 25 2016
During its last fiscal year, OPG generated a record 3.2 billion units of electricity.
drill.jpg
February 15 2017
Citing figures produced by Origin Energy, its partner in and operator of 16,000-square kilometres of licences, the gross best estimate of gas in place is put at a world-class 496 trillion cubic feet. Converting that to oil equivalent, it stacks up to 82bn barrels of the black sticky stuff.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use