Antrim Energy has signed an agreement with Premier Oil to jointly explore development options for the Fyne Area, which is located in the UK Central North Sea.

Under the terms of the agreement Premier will initially pay $2m to Antrim and will acquire a 39.9% interest in the Fyne licence in return for a payment of up to $50m towards the pre-development and development costs of the Fyne field.

Premier may also participate up to 50% alongside Antrim in a planned drilling programme in the Greater Fyne Area in the second quarter of 2011.

The Fyne licence is expected to have proved and probable reserves of 23.3 million barrels of oil.

Antrim owns a 75% working interest in the Fyne licence and a 100% working interest in the adjacent blocks in the Greater Fyne Area.