Premier Oil Buys More Into Bream Project Offshore Norway

Premier Oil has signed a sale and purchase agreement (SPA) with Skeie Energy AS to acquire a 20 per cent equity interest in PL407 and a 40 per cent equity interest in the adjacent PL406 licence on the Norwegian Continental Shelf.

This will increase Premier’s stake in the Bream project to 40 per cent and the company’s operated interest in PL406 to 80 per cent. Premier will pay an upfront consideration of $10 million to Skeie with further payments of up to $17.5 million contingent upon certain milestones being reached.

Project sanction of the Bream development is planned for the second half of 2012. First oil is targeted for late 2015 with an initial production rate of approximately 14,000 bopd net to Premier, upon completion of the transaction.

Simon Lockett, Chief Executive, commented:

“We are delighted to have this opportunity to increase our interest in the Bream project, which is making good progress towards project sanction. This transaction further demonstrates our commitment to becoming a full cycle E&P company in Norway.”

Bream is an oil field located 50 km northwest of the Yme. The Bream oil field was awarded to Premier and partners in the 2006 APA licensing round, having originally been discovered in the 1970s. The discovery was successfully appraised during 2009. Current development plans include four horizontal production wells and two injectors tied to a leased FPSO.

Discussions with the preferred contractor for the Bream field development regarding the timing and availability of the selected FPSO for the project have been completed and a formal development plan is expected to be submitted during 2012.

The first oil is expected to start flowing in 2015.

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Offshore Energy Today Staff, May 30, 2012