The well penetrated 152m of net pay with a high net-to-gross of 73% (vs. Zama-1 of 63%). This suggests potential resource upside and could see resource estimates being upgraded as the appraisal campaign continues.
Zama-2 will now be sidetracked to penetrate the reservoir vertically to aid coring and testing. The upcoming Zama-3 well will appraise the southern portion of the accumulation. With good confidence on the underlying resources, the Zama partners should now be thinking ahead on development plans.
The Zama field is planned to be developed from a single drill centre with drilling from the platform. Three production platforms are envisaged, each with capacity of up to 100mbopd. Produced oil is planned to be transported via a pipeline to the Dos Bocas terminal located onshore, c.70km away from the field.
For Premier Oil, this development could overtake the Sea Lion development in the Falklands (another large resource optionality for the company), adding visibility to additional near-term production growth.
The Zama partners are: Talos (35% operator), Sierra Oil & Gas (40%), Premier Oil (25%).
Sierra Oil & Gas was recently acquired by DEA.
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