Premier Oil is to spend up to 27.5 million dollars increasing its stake in the Bream oil project on the Norwegian Continental Shelf.
The company has signed a sale and purchase agreement with Skeie Energy to acquire a 20% equity interest in the PL407 licence and a 40% of the adjacent PL406 licence.
This would increase Premier's stake in the Bream project to 40%.
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Premier will pay $10m upfront to Skeie with further payments of up to $17.5m due based on certain milestones being reached.
The first oil production from the area is expected in late 2015 with an initial production rate of around 14,000 barrels of oil per day net to Premier, once this deal is done.
"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 Simon Lockett.
"This transaction further demonstrates our commitment to becoming a full cycle exploration and production company in Norway."
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