Premier Oil awarded three blocks in Brazil

Premier Oil has been awarded three blocks in Brazil's 11th Round held in Rio de Janeiro.

Premier Oil has been awarded three blocks in Brazil's 11th Round held in Rio de Janeiro.

The blocks are located in deep water basins offshore North East Brazil in largely under-explored areas and contain prospects and leads capable of delivering between 250m barrels and one billion barrels each.

Premier was awarded a 50% operated equity stake in blocks 717 and 665 in the Ceara basin, a cretaceous rift basin with a proven oil source rock.

It was also awarded a 35% non-operated equity stake in Block 90 in the Foz do Amazonas basin.

Premier will pay a total of $24.5m in signature bonuses and expects to invest in the region of $25m in 3D seismic data acquisition.

Well commitments include one exploration well in block 90 and two exploration wells in block 717 at an estimated total net cost to Premier of $100m. The group will fund the cost of this work programme from within its planned exploration spend.

Simon Lockett, group Chief Executive Officer, said: "We are extremely pleased with the outcome of the bidding round in Brazil which demonstrates Premier's ability to successfully compete for world class exploration opportunities and further increases the materiality of our exploration portfolio."

The share price rose 0.42% to 381.10p by 11:45 Thursday.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Of course bitcoin is a bubble – a bubble you can’t ignore
Bitcoin

Of course bitcoin is a bubble – a bubble you can’t ignore

Bitcoin’s wild ride is being called a bubble by many. And it is, says Dominic Frisby. But that’s not necessarily a bad thing. And it’s a bubble in whi…
13 Jan 2021
A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
I wish I knew what a SPAC was, but I’m too embarrassed to ask
Too embarrassed to ask

I wish I knew what a SPAC was, but I’m too embarrassed to ask

A financial instrument called a “special purpose acquisition company”, or SPAC for short, is growing increasingly popular in the US stockmarkets. But …
12 Jan 2021