2010-03-10-2010-01-05-2010-01-05

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
MM
Description

Acquired 50% WI in Oates/Bowers prospects in U.K. North Sea.

Premier Oil Plc, Edinburgh, (London: PMO) has acquired a 50% equity interest and assumed operatorship of Block 22/19c, in the U.K. North Sea, from Serica Energy Plc (Toronto Venture, London AIM: SQZ) in exchange for well costs.

Block 22/19c contains the Oates prospect, which targets the Paleocene Forties sandstone reservoir and is estimated to have unrisked resources averaging 65 million barrels of oil equivalent. The block is also home to the Bowers prospect, which Premier estimates contains between 10 million and 65 million barrels of oil equivalent.

In exchange for the farm-in interest, Premier will fund a 10,000-foot exploration well on the Oates prospect to be drilled in mid-2010 or early third-quarter.

The Oates prospect is similar to nearby Forties Fields such as Huntington, Montrose and Columbus. Columbus was discovered by Serica in 2006 and is now in the final stages of development planning.

The deal is subject to U.K. government approval.