UK: Premier to Abandon East Fyne Well Despite Positive Oil & Gas Find

British company Premier Oil has announced that it will plug and abandon the East Fyne appraisal well in the UK North Sea, despite positive oil and gas results from the well. Premier said the result amounts were lower than what the company had expected at the site.

In a statement released on the company's website, Premier said it had encountered 11 feet of gas bearing sand within the Upper Tay formation and 8 feet of oil bearing sand within the Middle Main Tay, after drilling to a total depth of 5,020 feet.

The company said it had decided to plug and abandon the well after discovering that the thickness of the oil-bearing sand was lower than had been estimated before drilling began.

The information collated as a result of the appraisal will now be incorporated into Premier's plans for the Greater Fyne Area, with a decision on whether commercial development is viable expected for the second quarter of 2012.

The appraisal well used, the Sedco 704 rig, will now be moved to the 60 per cent Premier-operated Bluebell prospect in licence P1466, UK Block 15/24c, in the North Sea.