The East Fyne well is an appraisal well designed to de-risk the eastern extent of the Fyne field in Block 21/28a, and is expected to be drilled before the end of this year.
The well will be drilled at no cost to Antrim and the cost of drilling, completion and/or abandonment deducted from Premier’s carried contribution of up to $50m assigned to offset all or a portion of Antrim’s development expenses to bring the Fyne field to production.
This election by Premier results in the transfer of a 39.9% working interest and operatorship of the Fyne Block 21/28a from Antrim to Premier.
Antrim retains a 35.1% working interest in the block, with First Oil Expro the remaining 25% working interest.
The license assignment and transfer of operatorship under the agreement is subject to partner approval and to the usual UK government approvals.
The Fyne Block 21/28a was assigned gross proved plus probable reserves of 23.3 million barrels of oil by independent engineering consultants McDaniel & Associates as at 31 December 2010.
The Fyne field is situated immediately west-southwest of the Guillemot group of oil fields, which have produced in excess of 70 million barrels of oil to date.
Drilling of the East Fyne well will be in addition to Antrim’s drilling plans for two exploration wells in the Greater Fyne Area, the West Teal and Carra wells.
Premier retains a right to participate up to 50% in the Greater Fyne Area exploration program, which is due to commence mid-year 2011.
