Premier Oil announces that it has reached agreement with Serica Energy plc ("Serica") that, subject to government approval, it will farm-in to a 50% equity interest and assume operatorship of Block 22/19c in the UK Central North Sea.
Block 22/19c contains the Oates and Bowers Palaeocene prospects. The Oates prospect is an amplitude supported stratigraphic trap, targeting the Forties sandstone reservoir. Premier estimates the gross unrisked resource range as 25 mmboe to 107 mmboe with a mean of 65 mmboe. The prospect is considered to be moderate to low risk. On success, follow up potential exists in the Bowers prospect (10 mmboe to 65 mmboe gross resource range). Subject to rig confirmation and site survey, an exploration well on the Oates prospect, to be funded by Premier, will be drilled late in the second or early in the third quarter of 2010.
Simon Lockett, Chief Executive, commented:
"Following on from the Oilexco acquisition Premier is building a new core area in this part of the UK Central North Sea, via the Huntington development project and our involvement in the Moth discovery. The Oates prospect is an excellent near term opportunity to add reserves via organic growth in this new core area, lying as it does 10 km to the south of Huntington and 25 km northwest of Moth."
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