U.K. oil company Premier Oil said Wednesday it will fundraise in the market to pay for Calgary outfit Oilexco’s North Sea operation, a prize worth some $505 million that includes some fo the best oiflields found and developed offshore Britain in the past decade.

Premier said it will raise £171 million ($252 million) to carry the deal. Oilexco had been under creditor protection after being hit hard by lenders no long lending.

A Premier called the move “strategic” with “profound operational” implications that meant a step change for the striding indpendent.

"This is the most exciting development in Premier's recent history,” Premier chairman, Sir David John declared.

Management said buying up Oilexco’s assets “will provide Premier with a complementary asset base in the North Sea, balancing the group by delivering critical mass in a second core area in addition to Asia.”

Some 60 million barrels of oil equivalent are the booty and some 385 MM boe across 15 prospects are “unrisked”. Some 14,700 barrels per day of production would come Premier’s way in 2009.

While Premier was interested in Oilexco's fields --- Balmoral, Brenda, Nelson and Nicol --- the deal was dependent on creditors and Oilexco agreeing the package did not include bank debt, rig or floating production commitments.

Tags: Oilexco, Premier Oil