In line with its strategy to spread exploration risk and manage costs, Serica has signed an agreement with Nations Petroleum, a subsidiary of the privately owned oil exploration and production company Nations Energy Company Ltd., to farm-out a 45% interest in the Biliton PSC, subject to required regulatory approval. In return Nations Petroleum will bear the majority of the costs of the two well drilling program scheduled to commence in Q2 2007.
Serica will remain as operator and retain a 45% interest in the Biliton PSC. A number of potentially significant prospects have been identified within the PSC, which is located in a virtually unexplored basin, and the Seadrill-5 drilling rig is contracted from Q2 2007 to drill the two exploration wells back-to-back.
Paul Ellis, Chief Executive, said:
"We are extremely pleased to announce the farm-out of a 45% interest in the Biliton PSC, whilst retaining operatorship and a 45% interest for Serica. In line with the strategy announced at the time of our UK fundraising in December 2005, this allows Serica and its shareholders significant exposure to high impact exploration drilling whilst managing the cost to the Company."
Serica Energy plc is an international oil and gas exploration company with operations in the UK North Sea, Norway, Ireland, Spain, Indonesia and Vietnam.
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