Premier Oil hails ‘potentially significant’ Norwegian discovery

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Shares in oil and gas explorer Premier Oil jumped more than 5 per cent today after it said an exploration well in the Norwegian sector of the North Sea had highlighted a “potentially significant” oil discovery.

The firm has a 30 per cent stake in PL 359, which contains the Luno II prospect, and operator Lundin Petroleum said testing on the discovery is expected to be completed within two to three weeks.

Premier said: “The well encountered a significant gross reservoir section of close to 200 metres with a gross oil column in excess of 40 metres. The oil water contact was encountered at approximately 1,950 metres below mean sea level.

“Information gained so far indicates that the petroleum system in Luno II is different to that of the nearby Edvard Grieg and Johan Sverdrup fields. A comprehensive coring and logging program has been performed and the discovery will now be drill stem tested.”

Premier’s shares were up 19.4p, or 5.4 per cent, at 382.2p following the announcement.