Antrim to Farm-Out N. Sea Erne Prospect
Antrim has signed a Heads Of Agreement (HOA) to farm out a portion of its Erne Prospect located in the Greater Fyne Area in the Central North Sea.
Premier Oil UK Limited (Premier) has agreed to earn a 50% working interest in Antrim's 100% owned License P1875 by funding a promoted share of the costs to drill a well on the Erne Prospect on Block 21/29d. The well is expected to commence drilling in the third quarter of 2011 as part of the Greater Fyne Area drilling program announced by Antrim on March 28, 2011. A contract has been signed with AGR Well Management Limited to provide well project management and drilling services, including the provision of the WilPhoenix semi-submersible drilling rig, and a site survey has been completed.
The Erne Prospect is an Eocene Tay Formation oil prospect located between the Fyne and Guillemot NW fields at a drilling depth of approximately 6,000 feet. Erne is analogous to the Guillemot NW Field, which produces oil from the Eocene Tay Formation.
The Erne farmout is part of Antrim's strategy of managing risk and reducing cost while maintaining significant interest in its North Seas properties.
Assignment of the license interest to Premier will be subject to approval by the UK Department of Energy and Climate Change (DECC).
As previously announced on April 04, 2011, Antrim and Premier, along with First Oil Expro Limited, will also collaborate on the drilling of an appraisal well on the eastern flank of the Fyne Field, License P077 Block 21/28a. The East Fyne well is anticipated to be spud in 4Q 2011.
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