Premier Oil and gang expand North Sea portfolios

28th Oct 2010 08:12

Premier Oil has been awarded five new licences in the 26th UK Licensing Round, including several blocks close to its existing interests in the Central North Sea.The company, which already has a 35% interest in the potentially huge Catcher field, said the wins, announced yesterday by the Department of Energy and Climate Change, include two operated licences.It has the licence for Block 14/30b, owned 50:50 with operator Nexen. The pair will use 3D seismic reprocessing to assess the potential of a western extension of the Kildare discovery into the awarded block.Premier gets another half share with Nexen in the relatively undrilled area that includes Blocks 15/9, 15/10, 15/14 and 15/15. It has also farmed in to Nexen's Block 15/13b, which contains the Eagle and Talon prospects.A third deal with Nexen sees the pair take on Block 15/23g, north-east of Premier's Blackhorse discovery.Block 21/7b, in which Premier is operator with a 70% interest, lies in the western reaches of the Central North Sea basin and contains the Typhoon prospect.Finally, Blocks 22/26c and 22/21c includes the Cringlette and Ronan prospects. Premier has 30% of this. "The awards underline Premier's commitment to building a growing exploration and production business in the UK following the successful acquisition of Oilexco North Sea Limited in 2009 and recent success in our 2010 exploration programme," chief executive Simon Lockett said.A whole host of other small and mid-cap explorers were also awarded interests in the region.Nautical Petroleum has been offered three exploration/appraisal part blocks in the 26th Seaward Licensing Round. Block 9/1 lies immediately to the west of the company's successful 9/02b- 4z find on the south western flanks of the Kraken oil field. "The acquisition of part Blocks 8/15 and 9/11d consolidates the potential for upside extensions of the Heimdal and Maureen reservoirs of the Mariner field development," boss Steve Jenkins said.Faroe Petroleum been provisionally awarded four new exploration licences west of Shetland, while Xcite Energy gets licences over Blocks 9/3c and 9/3d, which "enhances the development potential of the Block 9/3 area containing the Bentley field".Rheochem has been offered eight appraisal and exploration blocks. Subsidiary Zeus will be the operator with a 90% interest. Blocks 3/5 & 3/10c include a 1980's gas discovery where low flow rates were encountered but a potentially large gas-bearing area has been mapped. They are adjacent to the Alwyn fields, with infrastructure and facilities currently operated by Total. Serica Energy wins a production licence over Blocks 210/19a and 210/20a in the Northern North Sea, while possible grants of further licences applied for are subject to the results of environmental assessments by the Department of Energy and Climate Change."The four prospects have estimated mean prospective resources ranging from 17 to 51 million barrels," the firm said Thursday. "The work programme will include the licensing and interpretation of 3D seismic data and Serica will make a drill or drop decision within two years of the formal award.