Premier oil make “significant” discovery in Mexico

uk ol ukog

Premier oil (LON:PMO) announced a significant new oil discovery in offshore Mexico, sending shares higher on Wednesday morning.

The UK oil exploration company struck an estimated 1 billion oil barrel find in Mexico, in what it said was the fifth largest discovery globally in the past five years.

According to the announcement, preliminary analysis of the find indicates a gross oil bearing across 335 metres, with up to 200 metres of net oil bearing reservoir.

In addition, initial tests reveal that light oil has been recovered to the surface of the area.

The discovery was made with joint venture partners US Talos Energy and Mexico’s Sierra Oil & Gas.

Sierra owns 40 per cent of the block, Talos has 35 per cent and Premier 25 per cent, which sent Premier oil shares up as much as 25 percent during early Wednesday morning trading.

Tony Durrant, Chief Executive, commented on the discovery:

“We are delighted to be announcing this significant new oil discovery offshore Mexico. 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.

He added: “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.

Premier oil is a UK based oil exploration company, that is listed on the London stock exchange and has been trading since 1934 under the name of the Caribbean Oil Company.

The group have operations in diverse locations such as the Falklands, Indonesia, Pakistan, the UK and Vietnam alongside others.

Premier is set to update the market and investors tomorrow on the discovery, which will be subsequently followed by a conference call at 9.30 a.m.

Shares in Premier are up 28.11 percent as of 11.00AM (GMT).