Premier is pleased to announce that the Zama-1 exploration well in Block 7 (Premier equity 25 per cent) in the shallow water Sureste Basin, offshore Mexico, was spudded at 0630 on 21 May 2017. This is the first exploration well to be drilled on acreage awarded in Mexico's first international licencing round in 2015.
The well's principal target is the low risk Zama prospect with supportive direct hydrocarbon indicators in the Tertiary clastic reservoirs. The Zama structure is estimated to have a P90-P10 gross unrisked resource range of 100-500 mmbbls. The well is expected to take up to 90 days to drill both the Zama prospect and the secondary target, Zama Deep, at a total cost to Premier of $16 million.
The partners in Block 7 are Talos Energy (operator, 35 per cent), Sierra Oil and Gas (40 per cent) and Premier (25 per cent).