Premier Oil Plc, the London-based producer that won rights to explore for Mexico crude last week, sees a “very good indication of oil and gas” in the most coveted of the blocks auctioned.

Premier, which jointly bid with Talos Energy LLC and Sierra Oil & Gas, observed a spot in its seismic studies of block 7 that is “likely to be oil,” Robin Allan, the company’s Director of North Sea and Exploration, said in phone interview from London. Of the 14 blocks auctioned by Mexico for exploration, block 7 received the most interest from producers, including bids from Statoil ASA, Hunt Oil Co. and a group led by Eni SpA.

Premier’s group was the only winner, claiming rights to explore for crude in shallow waters off the coasts of the Veracruz and Tabasco states. The group also won rights to explore block 2, which could contain as much as 1 million barrels of oil, Allan said.

“We only saw two blocks we liked, we applied for both of them and won both of them,” Allan said. “I would like to think that Mexico will be a successful and core part of Premier in years ahead.”

Premier, which holds a 10 percent equity in the group, has the option to increase its participation to 25 percent. The company’s shares have fallen 18 percent this year.

Source: www.bloomberg.com

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