Serica Energy completes farm out of two UK East Irish Sea blocks

Serica Energy confirmed it has completed the farm out of UK East Irish Sea Blocks 113/26b and 113/27c (Licence P.1482) with Centrica through its subsidiary Hydrocarbon Resources Limited (HRL).

Under the agreement, HRL has acquired an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica’s share of costs associated with the drilling of an exploration well, up to a gross cap of £11 million. In addition, the transaction involved the transfer from Serica to HRL of a 15% interest and operatorship in the adjacent Block 113/22a (Licence P.2124), which was awarded in the 27th Offshore Licensing Round. The equity interests over the two licences are now aligned.

The Doyle gas prospect, lying in the north of Block 113/27c and extending into Block 113/22a, is ready to drill. The site survey for this prospect has been completed and planning for the well is under way.

Press Release, August 6, 2014; Image: Serica Energy