As part of the deal, Oyster will acquire a 9% interest in licenses P.1631 and P.1832 in the UK, covering blocks 204/14c, 204/18b and 204/19c.
According to Oyster, an exploration well on the blocks on the Handcross prospect targeting 150 mm bbl reserves is expected to be drilled at the end of 2013.
Oyster will also buy Ithaca’s 33% interest in West of Shetlands license P.2018, covering blocks 214/24b, 214, 29a and 214/30c and including the RWE Dea-operated Ainslie prospect, under the terms of the deal.
Oyster Petroleum CEO Richard Morgan said the Handcross prospect offers material potential close to existing infrastructure and also a near-term drilling opportunity.
"Ainslie offers attractive prospectivity within an emerging area in the West of Shetlands and we look forward to advancing the project with RWE and Premier," Morgan added.
"This first acquisition for Oyster closely follows our strategy of targeting new plays and sizeable exploration prospects on the UK Continental Shelf."
