Decisions pending on Huntington, Moth

Premier Oil is progressing plans for two new field developments in the UK North Sea, both part of a portfolio of interests acquired from Oilexco earlier this year.

Offshore staff

LONDON-- Premier Oil is progressing plans for two new field developments in the UK North Sea, both part of a portfolio of interests acquired from Oilexco earlier this year.

In September, Premier invited tenders for a floating production vessel for the Huntington project, with bids due in early next month. The joint venture partners are considering other concepts, with the final selection decision due during early 2010.

In the area around the gas-condensate discovery Moth, Premier has been conducting studies into the Triassic potential identified in license P1181 and the Fulmar play. The intention is to integrate this work into a regional investigation covering acreage around Moth and Huntington, also examining deeper-lying prospectivity. The plan is to drill two wells in 2011.

Among Premier’s UK fields already in production, the floating production vessel on Balmoral recently had two risers replaced during a shut-down, as part of a longer term program of upgrades. Construction work continues on the platform to accommodate production from Talisman’s Burghley field which is due on stream next summer 2010.

Premier has sold its 6.45% interest in the Janice/James fields to Maersk Oil in consideration for a production royalty interest. It has also agreed to sell to Velo Energy block 16/26b, 21/23a, 28/9, and 28/10c containing the Caledonia field, the Sheryl discovery, and the Catcher prospect, for $12 million in cash and future contingent payments of $8 million and $5 million.

In the Norwegian sector, Premier says various development options are under review for the Frøy field with companies operating in the Frøy/Heimdal area. A joint study is examining export options as part of a wider area solution which could also encompass the Rind (formerly Little Frøy), Tue, and Frigg Delta/Gamma fields. Results of the study are expected in January.

Following BG Norge’s recent successful appraisal of Bream, several development concepts are on the table, headed by an FPSO. A development could be launched next year, leading to first oil in 2011 or 2012.

As for exploration, Premier expects to drill or participate in various Norwegian North Sea wells next year. Among these, the Blåbaer prospect will be drilled in the first quarter and the Premier-operated Gardrofa well should spud in July. Another well will be drilled on the PL378 license, either as an appraisal of this year’s Grosbeak discovery, or to test the nearby Gnatcatcher prospect.

11/20/2009

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