Premier has signed an agreement with Reach Exploration Ltd. to acquire a 50% interest in license P1048 in Moray Firth blocks 20/10b, 21/6a, 20/15a, and 21/11b in the North Sea. The license is on trend with the Buzzard discovery. Reach will retain a 5% carried interest, having also farmed out a 30% interest to Intrepid Energy North Sea Ltd. and a 15% interest to First Oil Expro Ltd. on the same terms.
Premier has signed an agreement with Reach Exploration Ltd. to acquire a 50% interest in license P1048 in Moray Firth blocks 20/10b, 21/6a, 20/15a, and 21/11b in the North Sea. The license is on trend with the Buzzard discovery. Reach will retain a 5% carried interest, having also farmed out a 30% interest to Intrepid Energy North Sea Ltd. and a 15% interest to First Oil Expro Ltd. on the same terms. The UK Department of Trade and Industry has approved the assignment of this license, and Premier will become operator.
The license was originally awarded to Reach in the 20th round under a four-year drill or drop obligation. Farm-in parties are under an obligation to reprocess 400 sq km of 3D seismic and to drill a well on the license in order to retain their equity. The joint venture plans to drill a well in 2Q 2004 following seismic reprocessing and selection of a well location by the end of 2003.