An oil based primer (not undercoat) will penetrate deeper than water based. Oil and water don't mix,this also appplies to paint,though nowhere near as strict. An all oil based system e.g oil based primer,undercoat and gloss is a very good sytem to use,in my view,the best. Due to enviromental issues next year,whilst many oil finishes will still be available,due to the new paint regulations will contain far less solvent and carrier(the liquid that evaporates as the paint dries). This makes oil based handle very differently. For exterior wood oil based is the only way to go,water based hasn't caught up in terms of durability yet but it it's getting there.