Rig: Valaris DPS-3

Zama-1 Spudded

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).

Contract Termination

Stone Energy Corporation (NYSE: SGY) today announced the termination of an existing long term deep water rig commitment and the execution of a new interim Appalachian midstream contract. Stone and Ensco have agreed to terminate Stone's current contract with Ensco for total consideration of $20 million, approximately $5 million of which was a deposit previously provided to Ensco pursuant to the drilling services contract. Further, Stone agreed to provide Ensco the opportunity to perform certain drilling services commenced before December 31, 2019, and Stone paid Ensco a $5 million deposit to be used as a credit against future drilling activities initiated before March 31, 2017, subject to extension in certain circumstances. The ENSCO 8503 deep water rig contract was at a day rate of $341,000 and was scheduled to expire in August 2017.

Keppel to deliver fourth ENSCO 8500® Series deepwater rig on schedule

Keppel FELS Limited (Keppel FELS) is on track to deliver ENSCO 8503, the fourth of seven ENSCO 8500 Series® semisubmersible drilling rigs being built exclusively for Ensco plc (NYSE: ESV). ENSCO 8503 is scheduled to commence a two-year primary term with Cobalt International Energy, L.P. in the Gulf of Mexico in early 2011.

Keppel FELS to build fourth ultra-deepwater semi valued at US$427million for ENSCO

Keppel FELS Limited (Keppel FELS) has secured an order for an ultra-deepwater semisubmersible (semi) drilling rig from a wholly-owned subsidiary of ENSCO International Incorporated (ENSCO). The total project value is US$427 million. The semi, ENSCO 8503, will be the fourth semi that Keppel FELS is constructing for ENSCO. It is expected to be delivered in the third quarter of 2010.