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Premier Oil shares rise as Zama discovery is upgraded

Zama is now estimated to have some 810mln barrels of gross resources.

oil and gas operations
A final investment decision is eyed next year

Premier Oil PLC (LON:PMO) shares were on the front foot, rising around 2%, in Thursday’s early deals as it revealed positive results from the Zama discovery offshore Mexico.

Successful appraisal drilling at Zama – which confirmed the discovery over 2.4 kilometres and showed reservoir quality at the upper end of expectations – has led to a significant upgrade to Premier’s view of the asset.

READ: Premier Oil upgrades guidance as production growth continues

Zama is now estimated to have some 810mln barrels of gross resources (P50m mean estimate), with the estimate range (P90 to P10) pitched at 670mln to 970mln barrels.

It underlines Zama’s credentials as a ‘world class’ discovery.

"We are delighted with the results of the latest Zama appraisal well which, together with the positive results from the earlier appraisal wells, has caused us to significantly upgrade our resource estimates of the Zama structure,” said Tony Durrant, Premier chief executive.

“Our focus now turns to selecting the optimal development for the field, ahead of taking a final investment decision next year."

Quick facts: Premier Oil PLC

Price: 89.918 GBX

LSE:PMO
Market: LSE
Market Cap: £752.74 m
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