Serica has been awarded a 20% interest in both of the two licenses that it applied for in Norway's 2006 Awards in Predefined Areas ("APA") License Round. The two offshore licenses are contiguous and lie in the Egersund Basin, about 120 kilometers southwest of Stavanger, Norway's fourth-largest city and largest port serving the oil industry.
The northern license covers an area of approximately 725 square kilometers comprising parts of the following license blocks: 17/8, 17/9, 17/11, 17/12, 18/7 and 18/10. It includes the Bream oil discovery (1972) and the Brisling oil discovery (1973).
The southern license covers an area of approximately 900 square kilometers comprising parts of the following blocks: 8/3, 9/1, 17/12, 18/10 and 18/11. It includes the 18/10-1 oil discovery (1980).
The Bream discovery was one of the very first discoveries in the Norwegian sector of the North Sea. The well was tested at rates of up to 1,000 barrels per day of 30 degrees API oil. Due to the size of the field and the low production rates achieved during the tests, it was regarded as uneconomic in the 1970s.
Following analysis of modern 3D seismic data that defines the field boundaries, Serica estimates that the recoverable reserves of the Bream field lie within a range of 40-100 million barrels. Using modern highly deviated or horizontal completions should enable individual wells to produce at rates in excess of 6,000 barrels per day.
The oil rates achieved during the Brisling and 18/10-1 flow tests were approximately 2,200 barrels per day and 1,800 barrels per day respectively, but whilst the flow rates were higher the discoveries are smaller than Bream and require further evaluation.
Paul Ellis (Chief Executive) said: "This is the first time that this area of the Egersund Basin has been available for licensing since the 1980s and we are very pleased to have been awarded these two licenses as our first entry into Norway. In particular, the Bream license was one of the most highly sought after licenses in the 2006 APA Round, as it contains an oil discovery that Serica believes to be potentially commercial. We look forward to working with our new operators and partners to appraise the Bream discovery and to carry out further exploration in the license areas."
Serica Energy plc is an international oil and gas exploration company with operations in Indonesia, the UK North Sea, Spain, Ireland and Vietnam.
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