A North Sea-focused oil and gas firm backed by a Bermuda private equity operation has announced plans to explore in the wilds of the outer Moray Firth in an encouraging sign for the industry.

Azinor Catalyst expects to start drilling a well this year on the Partridge oil prospect 105 miles off Aberdeen in a move which shows faith in the exploration potential of the North Sea.

It also highlights the way in which the shake up in the area and sharp fall in drilling costs triggered by the crude price slump since 2014 may provide a boost to exploration activity in UK waters.

Azinor Catalyst’s managing director Nick Terrell said Partridge has the potential to significantly change the industry’s perception of an under-explored part of the North Sea.

He added: “We are in a position to capitalise on the significant reductions in drilling costs that we have seen in the UK North Sea market, with a reduction of over 50 per cent in overall well cost since the beginning of the downturn in 2014.”

Azinor said it plans to start survey work in preparation for drilling on a licence it acquired only 12 months ago in a deal involving low up front costs, struck amid the depths of a downturn that has taken a heavy toll on the North Sea.

It reckons Partridge could contain up to 260 million barrels recoverable oil equivalent.

The London-based firm bought the licence containing Partridge and another prospect from the former Trap Oil business and the Norwegian Energy Company last January. It agreed to pay up to $4 million if it won approval to develop a find of the required size.

Trap Oil developed an extensive North Sea exploration portfolio helped by the £30m acquisition of Banchory- based Reach Oil & Gas in 2011.

However, the company lost £44m in 2014 when the producing Athena oil field became significantly loss making following the fall in the oil price.

Formed in 2014 with backing from Seacrest Capital, Azinor has set out to build a material portfolio of assets on the United Kingdom Continental Shelf.

Mr Terrell and Azinor’s technical director Henry Morris used to work for Endeavour Energy.

A number of private equity-backed firms have bought UK North Sea assets since the crude price started falling. Sector watchers have noted asset prices have also fallen amid the downturn.

On its website Azinor Catalyst says the UKCS continues to deliver above global average exploration success rates in a geopolitically stable area where operating costs and tax rates have been falling.

The company has amassed interests in 11 licences off eastern Scotland and one in the Rockall Trough west of the Hebrides.

It reckons a well on Partridge will cost around $9m (£7.3m).

Andrew Benitz and Ronald Landsell took charge of Trap Oil in July 2015 after it acquired the Jersey Oil & Gas business they ran in a £500,000 deal. Renamed Jersey Oil & Gas, Trap Oil decided to focus on producing assets in the North Sea.

In November the Aim-listed company raised £1.6m from investors as it eyed potential production acquisitions.