StockMarketWire.com - Premier Oil said the operator of a side-track well offshore Mexico had successfully completed production testing.

Talos Energy, the operator of Block 7, said it had performed a drill stem test of the Zama-2 side track well.

The test followed the successful Zama-2 appraisal well, which was completed in January.

A combined oil flow rate of 7,426 barrels of oil per day was achieved from two separate flow tests over a total perforated interval of 248 feet.

As planned, rates were restricted due to limited drawdown to prevent sand production.

Flow and pressure measurements indicated a prolific reservoir.

The Zama-2ST1 logged 873 feet of gross oil bearing reservoir with a net-to-gross ratio of around 70%, in line with expectations.

In addition, 714 feet of whole core was cut with 98% recovery.

The rig would now move to drill the third and final Block 7 appraisal well -- Zama-3 -- to confirm lateral reservoir continuity and quality in the southern part of the field.

'We are very pleased by the productivity demonstrated by this well and we continue to collect further evidence that Zama has a world-class reservoir with excellent quality and well-connected sands,' chief executive Tony Durrant said.

'This has positive implications for the expected ultimate recovery from the field and will help us to optimise the field development.'

'We look forward to the conclusion of the Block 7 appraisal programme with the Zama-3 well.'

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