Serica Farms-Out Stake in East Irish Sea Duo
Serica has reached agreement with Agora Oil & Gas (UK) AS for the farm-out of UK East Irish Sea Blocks 113/26b and 113/27c, which contain the Conan and Doyle prospects and in which Serica presently holds a 100% interest. The agreement is subject to UK government approval.
An exploration well on the Conan prospect, 70% funded by Agora, is planned to be drilled in the second quarter of 2010 to a depth of approximately 5,000 feet. In return for this funding, Agora will earn a 35% interest in the blocks. Serica will retain a 65% interest and operatorship of the blocks.
Conan is a high potential Triassic Sherwood sand gas prospect identified on 3D seismic data and covers an area of approximately 28 square kilometers. It is adjacent to the producing Millom gas field and to the recent Rhyl gas discovery. Being close to existing gas production infrastructure, a discovery at Conan could be developed relatively quickly. Conan is believed to be the largest undrilled Sherwood seismic anomaly in the East Irish Sea.
Paul Ellis, Chief Executive of Serica, commented, "I am very pleased that we have reached agreement with Agora to farm-out the Conan prospect. This is the second farm-out Serica has announced this year and it demonstrates the success of our strategy of securing large working interests in highly prospective acreage to facilitate promoted farm-outs. The farm-out of both Oates and Conan further de-risks our portfolio whilst allowing us to retain a significant interest and upside exposure. The founders of Agora were also the founders of Revus, a successful North Sea independent E&P company, and we are delighted to welcome Agora as our partner in this exploration venture."
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