Oyster Buys into North Sea Licence

Oyster Petroleum has recently entered into a farm-in agreement whereby, in exchange for covering certain well costs on drilling, Oyster Petroleum will acquire a 25% interest in licence P.1948, covering blocks 29/7c, 12, 13 and 14 in the UK Central North Sea.

The P.1948 licence is operated by Endeavour Energy UK Limited, with further Joint Venture partners Faroe Petroleum (U.K.) Limited and First Oil and Gas Limited, and includes the Shipley and Forwood prospects.

Richard Morgan, Chief Executive Officer of Oyster Petroleum, commented: “We are very pleased to be working with our new partners in Endeavour, Faroe and First Oil as we acquire our first licence interest in the Central North Sea to add to our existing holdings in the West of Shetlands province. This transaction follows our strategy of advancing new plays and new prospects as we work to build a high quality exploration programme on the UKCS. The Central North Sea will continue to be a core area for Oyster Petroleum and we are actively targeting further licence acquisitions in this area.”

The deal remains subject to regulatory approvals from DECC and the Secretary of State.

Press Release, September 23, 2014