Premier Oil (LON:PMO) has acquired interests in two projects on the Norwegian continental shelf from Skeie Energy AS today.
The FTSE 250 oil and gas group has bought a 20 percent stake in licence PL407 and a 40 percent interest in the adjacent PL406 licence.
This will increase Premier’s stake in the Bream project to 40 percent, while lifting its interest in PL406 to 80 percent.
Bream is expected to start producing in 2015 at an initial rate of around 14,000 barrels of oil per day (bopd) net to the group.
“We are delighted to have this opportunity to increase our interest in the Bream project, which is making good progress towards project sanction,” said chief executive of Premier Oil Simon Lockett.
“This transaction further demonstrates our commitment to becoming a full cycle E&P company in Norway.”
In return for the assets, Premier will pay US$10 million to Skeie and potentially a further consideration of up to US$17.5 million is certain milestones are met.