Premier, Antrim team for Fyne

Premier Oil and Antrim Energy are to jointly study development options for the Fyne Area in the UK central North Sea.

Offshore staff

LONDON -- Premier Oil and Antrim Energy are to jointly study development options for the Fyne Area in the UK central North Sea.

Under the terms of their agreement, Premier will have the option to farm into 39.9% of block 21/28a containing the Fyne heavy oil field. In exchange, Premier will pay up to $50 million towards the field’s pre-development and development costs. These will include an immediate $2 million payment and possibly also drilling of an appraisal well on the eastern part of the Fyne structure.

Antrim has a 75% operating interest in block 21/28a, and a 100% interest in adjacent blocks 21/28b, 21/29c, 21/24b, and 21/24c, collectively known as the Greater Fyne Area.

Premier has a further option to take up to 50% in these blocks via drilling program which could start next spring.

Block 21/28a holds proven plus probable reserves of 23.3 MMbbl.

10/07/2010

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