Premier wins two blocks in Mexico’s round 1

Premier Oil, together with its joint venture partners Talos Energy and Sierra Oil & Gas, has been awarded Blocks 2 and 7 in Gulf of Mexico.

The blocks were awarded in Mexico’s round 1, held in Mexico City on July 15.

According to Premier Oil, the Blocks contain numerous leads in established and emerging plays, located in the shallow water Sureste Basin, a proven and prolific hydrocarbon province in the Gulf of Mexico.

Blocks 2 and 7 contain Tertiary clastic plays, typical of the Salinas sub-basin. The company says that the forward plan is to acquire, evaluate and reprocess 3D seismic data with a view to firming up drilling locations towards the end of 2016.

Tony Durrant, Chief Executive, said: “We are very pleased with the outcome of this round which provides Premier with a low cost entry point to emerging plays in a proven oil and gas province.”

The JV comprises operator Talos Energy with 45 per cent, Sierra Oil & Gas with 45 per cent, and Premier with 10 per cent.

Premier can elect to participate in the drilling programme at an equity interest of up to 25 per cent.

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