Oil and gas explorer Antrim Energy has signed an agreement with Premier Oil UK to jointly explore development options for the Fyne area of the North Sea.
Premier will pay an initial consideration of $2m to Antrim, and will have the option to acquire a 39.9% interest in the Fyne Licence (Block 21/28a) in return for a payment up to $50m, less the initial consideration, towards the pre-development and development costs of the Fyne field.
Antrim owns a 75% working interest in the licence and a 100% working interest in the adjacent blocks 21/28b, 21/29c, 21/24b and 21/24c (the Greater Fyne Area).
The agreement also provides Premier the option to have 50% operating interest in the Greater Fyne Area, and a planned drilling program is scheduled to start as early as the second quarter of 2011 in this area.
Any licence assignment under the agreement will be subject to the usual UK government approvals.