So downside limited when currently trading below EV value.
Obviously this includes the "Sinapa" oil discovery
P50 250mmbbls OIP
http://www.petrobank.com/
Guinea-Bissau Exploratory Well Results
Wed March 27, 2002 : Calgary, Alberta
The first exploration well on the Sinapa prospect offshore Guinea-Bissau in Northwest Africa was spudded February 12, 2002 by the operator Premier Oil plc. Through drilling this well, Premier farmed into Petrobank's existing exploration license and satisfied the drilling commitment.
The Sinapa structure is a large salt diapir structure, with expected Albian aged reservoir rocks present in a trapping configuration along the margins of the salt sediment interface. The Sinapa-1 exploratory well was originally planned to intersect these Albian reservoir rocks several hundred meters away from their contact against the salt diapir. The first well bore intersected salt at a depth of approximately 1100 m and remained in salt to total depth. A second deviated well path was attempted which also remained in salt to total depth without contacting the expected Albian reservoir. The potential for Albian sediments surrounding the Sinapa structure was consequently not tested, although hydrocarbon indications were noted in sediments above the salt. The well has been designated plugged and abandoned with oil shows. Petrobank and Premier are now reviewing the acquired well data and available 3D seismic information prior to a decision on possible future exploration drilling in the region.
RNS Number:7972X Premier Oil PLC 20 April 2004 PREMIER OIL PLC
("Premier")
Sinapa Well
Premier announces the completion of the Sinapa-2, 2ST well, located offshore Guinea Bissau in West Africa, which is being plugged and abandoned as an oil discovery.
The Sinapa-2 well has gone some way to defining reserves in the Sinapa diapir prospect, however reservoir quality and structuring issues will need to be thoroughly appraised and understood through further seismic and later drilling before any declaration of commerciality can be made.
The results of this well have significantly reduced the risks of the salt diapir flank play in Guinea Bissau.
Premier's acreage in blocks 2, 4a and 5a includes a number of similar diapir structures that have the same play elements controlling hydrocarbon occurrence.
Premier are currently beginning the evaluation of the data from the new well, and anticipate a future programme that will include new 3D seismic acquisition followed by exploration and appraisal drilling.
Charles Jamieson, Chief Executive of Premier, said:
"The results of the Sinapa-2 well are encouraging for further exploration of our extensive acreage in Guinea Bissau now that the potential of the salt diapir play has been clearly proven. But it is too early to say whether the well has succeeded in discovering commercial quantities of oil in this particular prospect."
after further work the company now thinks there is a 800m oil column present
Sinapa Oil Discovery
The Sinapa-2 and 2ST wells drilled by Premier oil in 2004 confirmed the Sinapa Oil Discovery, defining a potential oil column in excess of 500 metres within steeply dipping beds flanking the Sinapa salt diapir; however reservoir quality and structuring issues will need to be thoroughly appraised and understood utilising further seismic and later drilling before any declaration of commerciality can be made.
During 2009 Svenska acquired some 250 kms of long offset 2D seismic the purpose of which is to improve data quality over the Sinapa discovery as well as over several undrilled prospects in the blocks. Processing of the seismic was completed during Q1 2010. Further modelling work on the Sinapa salt diapir has extended the potential oil column to 800 metres.The 2D work has highlighted a new lead identified as Cabacera/Bica.
(20min delay)