LONDON -- Premier Oil has exercised an option to drill the East Fyne appraisal well in the UK central North Sea.
Under the terms of its joint venture and earn-in agreement with Antrim Energy, Premier will have a 39.9% operated interest in block 21/28a which contains Fyne. In return, the company will carry up to $50 million towards the development costs, including the East Fyne well, designed to de-risk the eastern extent of the Fyne field. Drilling should start during the second half of 2011.
Antrim retains a 35.1% interest in the block and a 100% working interest in adjacent blocks 21/28b, 21/29c, 21/24b, and 21/29d (Greater Fyne Area). First Oil Expro Ltd. has 25% of block 21/28a.
Premier has a further option to participate in Antrim’s planned drilling program in the Greater Fyne Area, which could start later this spring.