Disappointment At PMO’s Vietnam Well Drilling

Analysts at RBC Capital Markets maintain their "outperform" rating on Premier Oil Plc (LSE: PMO). The target price for PMO has been reduced from 1425p to 1400p.

Premier Oil has failed to identify significant volumes of hydrocarbons in the Ca Rong Vang well in Vietnam. PMO plans to gather further seismic activity data on Block 07/03 before further starting drilling activities that are scheduled for H2/10.

Premier Oil achieved success in its Kadanwari-19 well in Pakistan, in-line with the pre-drill estimates. The recent depreciation in the company’s share price offers an attractive entry point, the analysts say. PMO has scheduled an exploration campaign that includes at least 10 wells for 2010.