Premier extends North Sea operations

Premier Oil expects to complete its $505 million acquisition of Oilexco North Sea Ltd. (ONSL) by the end of May.

Offshore staff

LONDON --Premier Oil expects to complete its $505 million acquisition of Oilexco North Sea Ltd. (ONSL) by the end of May.

Production from the ONSL fields in the UK sector is currently around 13,000 boe/d, and the process of assimilating the ONSL operations into Premier is under way.

Early this month the Nicol-2 well was brought on stream. On the Shelley field, work continues towards a fully-termed agreement for theSevan Voyageur FPSO to allow the field to be hooked up this summer.

Premier has made an enquiry for a semisubmersible drilling rig for possible drilling later this year on Brenda, Caledonia or Bugle.

In Norway, development work on the Frøy field, where Premier is a partner, is on hold while new studies are performed to bring in additional nearby reserves and to cut costs. Elsewhere in the sector, Premier expects the appraisal well on the Bream discovery, where it is also a partner, to spud in June.

Finally, the company has farmed down its interest in another well to be drilled shortly, Grosbeak North, and will retain a partially carried 20% equity in the block.

05/19/2009

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