Oyster Petroleum has entered into a farm-in agreement which will see it earn 25% interest in production licenes P.1948 in the central North Sea.
License P.1948 covers blocks 29/7c, 12, 13 and 14 in the UK Central North Sea and includes the Shipley and Forwood Prospects. The P.1948 licence is operated by Endeavour Energy UK, with partners partners Faroe Petroleum and First Oil and Gas. Oyster will earn its share by paying certain well costs on drilling.
Richard Morgan, Oyster's CEO, said: "We are very pleased to be working with our new partners in Endeavour, Faroe and First Oil as we acquire our first licence interest in the Central North Sea to add to our existing holdings in west of Shetland. The central North Sea will continue to be a core area for Oyster Petroleum and we are actively targeting further license acquisitions in this area’.
The deal remains subject to regulatory approvals from the Department of Energy and Climate Change and the Secretary of State.