Review of Operations

Last Updated on Tuesday, 13 October 2009 14:26 Written by Administrator Wednesday, 16 September 2009 11:41

Vietnam Block 07/03

Pan Pacific Petroleum (Vietnam) Pty Ltd a wholly owned subsidiary of PPP has entered into a farmin agreement with Premier Oil Vietnam South B.V. (‘Premier’) to earn a 15% interest, subject to the waiver of pre-emptive rights by PetroVietnam and Vietnamese Government approval of the farmin. Block 07/03 covers 4,915 km² in the prospective Nam Con Son Basin, and is located offshore, adjacent to block12W which contains the Chim Sao and Dua Oil Fields.

The farmin agreement included funding of part of Premier’s costs of an exploration well, which has now been completed. The well was drilled to a total depth of 3,810m and intersected oil and gas pay within multiple stacked reservoir layers. Two of these reservoir zones were tested and flowed oil at a combined rate of 3,265 barrels of oil per day plus 8.1 million standard cubic feet of gas per day, through a 48/64" choke, with no water production.

The discovery of oil and gas is very encouraging, and the JV has taken advantage of the current low seismic acquisition costs to acquire a 3D survey to define the resource potential of the discovery and adjacent structures, and to determine future exploration and appraisal activities. The JV plans to drill a second exploration commitment well in the fourth quarter of 2009.

Other partners in the block are Vietnam American Exploration Company, LLC (40%, a wholly-owned subsidiary of Pitkin Petroleum Plc), and PearlOil (Ophiolite) Ltd (15%). Premier (30%) is operator.