Premier Commences Gas Production from Zamzama Field

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27 Mar 2001

Premier is pleased to announce the start of contractual gas sales from the BHP Petroleum operated extended well test on the Zamzama gas field in southern Pakistan.

The twin-well project initially came on stream on 8 March 2001, less than a year after gaining government approval and just three years after the drilling of the first exploration well on the field in March 1998. The US$18 million development was completed on schedule and on budget.

Premier and its partners in the field will supply around 70 mmscfd of gas (equivalent to about 10,000 barrels of oil per day) to the Sui Southern Gas Company (SSGC) for an initial contract period of 21 months. The gas, which will be lifted from the Zamzama-1 and Zamzama-2 wells, is exported 8 kilometres via a minimum processing facility to the main SSGC Sui-Karachi gas pipeline.

Gross proven and probable reserves of more than 2 trillion cubic feet remain uncontracted and further gas sales are currently being pursued.

Charles Jamieson, Premier Oil's CEO said,

"This is Premier's third producing field in Pakistan bringing production up to around 4,000 boepd and we are well on the way to building a sizable production base in the country. We look forward to completing discussions with the gas companies which will allow Zamzama to be fully exploited. "

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