Finder Energy Holdings Limited announced that it has expanded its UK North Sea portfolio after entering into an agreement with Talon Energy Ltd. (Talon) to acquire a 100% interest in Seaward Production Licence P2527 (P2527 or the Licence). The agreement is conditional upon obtaining the usual regulatory approvals. P2527 is located in the Outer Moray Firth and covers an area of 110 square kilometers approximately 100km ENE of Aberdeen in water depths of around 100m.

The Licence contains the White Bear prospect, is located next to the giant Buzzard Field (1.5 billion barrels) and is proximate to Finder's P2528 licence. The Buzzard Field, which was discovered in 2001, is the most significant oil discovery in the North Sea in the modern era and the UK's higher producing oil field (peak production exceeded 200,000 bopd) with the reservoir consisting of Upper Jurassic deep marine turbidites within the Kimmeridge Clay Formation. Following completion of the Big Buzz reprocessing project, prospect evaluation will commence in June which is expected to generate risking and resource estimates on key prospects.

This work will kick off farmout efforts later this year to attract partners to fund drilling activity. Under the terms of the acquisition, Finder will acquire a 100% interest in P2527 in return for granting Talon a right to 12.5% of gross income received by Finder in relation to P2527 (for example, any cash received for farmout or divestment) which converts to a royalty of 3% of Finder's retained net share of produced petroleum during the production phase. These rights do not encumber any future farminee or purchaser of all or part of Finder's interest in P2527 so as not to impact any future transaction.

There are no up front cash or share payments payable to Talon in relation to the Acquisition.