Drilling Update/UK LicensesFrom their new licenses, looks like they like what they see in Ireland and near Chablis. Would have preferred an update on Kambuna though...
SERICA ENERGY AWARDED UK LICENCES
Serica Energy PLC has been offered three United Kingdom explorationlicences in the United Kingdom 25th Seaward licensing round and provides an operationalupdate.
UK 25th Round
In the UK 25th Round Serica was offered awards of licences coveringinterests in Block 15/21e (split) in the Central North Sea, Block 48/16a(part) in the Southern North Sea and Block 110/2d in the East Irish Sea. Theblocks have been offered under traditional licence terms and Serica willoperate two of the three blocks.
Block 15/21e (split) lies in the Central North Sea and Serica will have a30% interest. The block lies immediately west of the Scott field and containsa potentially significant extension to an existing Jurassic oil discovery inwell 15/21a-38. The licence operator will be a subsidiary of Encore Oil plc.
Block 48/16a (part) lies in the Southern North Sea and Serica willoperate the licence. The block lies immediately west of Serica's Chablisfield, in which appraisal drilling will shortly commence, and the field mayextend into the new licence. Serica will initially have a 100% interest, butthis may be reduced to 65% under the terms of a farm-out agreement. Sericapresently holds a 65% operated interest in the Chablis field in Blocks 48/16band 48/17d and further details about the upcoming drilling programme areprovided below.
Block 110/2d lies in the East Irish Sea adjacent to the Morecambe gasfield and five kilometres south of Serica's Blocks 113/26b and 113/27c whichcontain the Conan and Doyle prospects. Serica will operate the licence with a100% interest.
Operational Update
In the UK, Serica expects shortly to receive the Energy Enhancer jack-uprig in the Chablis field in Block 48/16b and to commence drilling the firstChablis appraisal well. The rig has been delayed by several weeks, due toextended operations on its current well in the Esmond field, and a firm spuddate for Chablis is not yet available.
In Norway, Serica has received government approval for the sale of itsNorwegian interests to Spring Energy and the sale will now be completed.
In Ireland, site survey work has recently been completed over the Bandonand Boyne prospects and the final well location for the Bandon prospect willnow be submitted to the Irish government for drilling consent. The contractunder which Serica was to use the Arctic II semi-submersible drilling rig forBandon has been terminated because the drilling contractor was unable tocomplete the purchase of the rig from its present owner. However, in thepresent economic climate the market for rigs is easing markedly and Serica isconfident that it will be able to secure a replacement rig for drilling inIreland next year.
Serica CEO Paul Ellis said: "We are very pleased with the result of the25th Round, which attracted record levels of interest from the industry. Inthe three blocks offered to Serica, the Company has identified several newprospects to add to its Western Europe portfolio in areas adjacent toestablished producing fields. We are confident that these prospects have thepotential to add material value to the Company."
Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who hasover 35 years' experience in the upstream oil and gas industry, has reviewedand approved the technical information contained in this announcement.
© 2008 Canjex Publishing Ltd.