Exploration and production firm Oyster Petroleum has entered into a farm-in agreement to acquire a 25% interest in licence P.1948 in the UK Central North Sea.

The licence covers blocks 29/7c, 12, 13 and 14 and the agreement covers certain well drilling costs.

Endeavour Energy UK operates the P.1948 licence with joint venture partners Faroe Petroleum (UK) and First Oil and Gas, and includes the Shipley and Forwood prospects.

The transaction is subject to approvals from the UK Department of Energy & Climate Change (DECC) and the Secretary of State.

Oyster Petroleum chief executive officer Richard Morgan 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 the West of Shetlands province.

"This transaction follows our strategy of advancing new plays and new prospects as we work to build a high-quality exploration programme on the UKCS. The Central North Sea will continue to be a core area for Oyster Petroleum and we are actively targeting further licence acquisitions in this area."

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By GlobalData

Oyster is focused on making new discoveries in new and significant oil plays in the UK North Sea.

The company, which has secured funding to undertake a focused exploration programme, is currently working to build a UK production base.

Image: The exploration licence P.1948 is located in the Central North Sea. Photo: courtesy of Oyster Petroleum.