UK oil producer Premier Oil has launched a bid to acquire Encore Oil for $340m.

If the sale is approved, Premier will hold a 50% stake in the Catcher area in the North Sea, reports Reuters.

The firm will also receive an additional 17 million barrels of discovered oil reserves and resources from wells drilled to date in the Catcher and Cladhan areas.

The acquisition bid is in line with Premier Oil’s strategy to realise its goal of pumping 100,000 barrels of oil equivalent per day.