Premier Oil secures two blocks in Gulf of Mexico with JV partners

Premier Oil and its joint venture partners Talos Energy and Sierra Oil & Gas have been awarded two blocks as part of Mexico's Round 1 shallow water licensing round.

The company said that Blocks 2 and 7, which it was awarded, contain numerous leads in established and emerging plays, located in the shallow water Sureste Basin, which is a proven and prolific hydrocarbon province in the Gulf of Mexico.

It said the blocks contain tertiary clastic clays, typical of the Salinas sub-basin.

The plan is to acquire, evaluate and reprocess 3D seismic data with a view to firming up drilling locations towards the end of 2016, said Premier.

Chief executive Tony Durrant said: “We are very pleased with the outcome of this round which provides Premier with a low cost entry point to emerging plays in a proven oil and gas province.”

At 08:20, shares were up 0.8% at 148.50p.