Serica Energy Farms-out Stake in Oak Prospect

Serica Energy has concluded a farm-out of part of its interest in UK North Sea Block 54/1b, where it expects to commence drilling the Oak prospect later this month. Serica will also commence drilling of an exploration well on the Columbus prospect in Block 23/16f during the fourth quarter of 2006.

In the Southern Gas Basin, the ENSCO 92 jack-up rig will drill the Oak prospect in Block 54/1b, targeting the Permian-aged Leman sandstone reservoir at a depth of around 7,500 feet. Drilling operations are scheduled to take about 30 days. Serica is the operator of the Block and the well will be drilled under a contract with Peak Well Management Limited.

As part of its strategy to spread exploration risk and manage costs, Serica will reduce its interest in Block 54/1b from 100% to 50% through the farm out of a 50% interest to Centrica Resources Limited ("Centrica"), a wholly-owned subsidiary of Centrica plc, in consideration for Centrica bearing 100% of the costs of drilling the Oak well up to the point where the total costs have reached (pnds stlg)8.5 million or a decision to test the well has been made, whichever occurs first.

In the Central North Sea, the semi-submersible GlobalSantaFe Rig 140 will drill the Columbus prospect in Block 23/16f, in which Serica has a 50% interest, targeting the Paleocene-aged Forties Sandstone reservoir at a depth of around 9750 feet. Drilling operations are scheduled to take about 30 days. The well will be drilled by Applied Drilling Technology Inc. (ADTI), a division of GlobalSantaFe Corporation, under a contract with Serica's partner in Block 23/16f, Endeavour Energy UK Limited.

Chris Atkinson, Chief Operating Officer, commented:
"The next 12 months will be an exciting period for Serica with intensive drilling across our assets targeting a range of prospects in terms of risk and reward. This includes exploration wells on Block 54/1b and Block 23/16f in the North Sea this year and exploration and development wells in Indonesia in 2007."

"The farm out in Block 54/1b reduces drilling costs and exploration risk to the Company ahead of the drilling of the Oak prospect, and we welcome Centrica as our new partner in the Block."

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Executive Assistant
Expertise: Executive|Secretarial or Administrative
Location: United States
Regional Manager - Saybolt
Expertise: Executive|Operations Management
Location: Linden, NJ
Senior / Associate Landscape Architect
Expertise: Project Management
Location: Kennesaw, GA
search for more jobs

Brent Crude Oil : $52.67/BBL 1.91%
Light Crude Oil : $51.6/BBL 2.60%
Natural Gas : $3.17/MMBtu 2.76%
Updated in last 24 hours