UK: Serica Energy and Premier Oil Spud Oates Well at North Sea

Serica Energy  announces that on 30 July drilling operations commenced at the Oates exploration well location in Block 22/19c in the UK Central North Sea.

The well will be drilled by the Ensco 100 jack-up drilling rig to a depth of approximately 10,000 feet and is anticipated to take approximately 30 days to drill. Serica has a 50% interest in the well.

The Oates prospect is considered low risk and exhibits a well-defined amplitude response on the 3D seismic data, similar to that seen in the Columbus field, in which three successful wells have been drilled by the Company. The prospect has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found.

On 5 January 2010 Serica announced that it had reached agreement with Premier Oil plc (“Premier”) for the farm-out of 22/19c. An exploration well on the Oates prospect, funded by Premier, is planned to be drilled to a depth of approximately 10,000 feet. In return for this funding, Premier will earn a 50% interest in the Block and will assume the role of operator. Serica will retain the remaining 50% interest.

Serica Energy plc is an oil and gas exploration and production company using specialised geophysical technology to create value through the discovery of new hydrocarbon reserves. Serica is based in London, England, and holds exploration and production licences principally in the UK North Sea and East Irish Sea, the Atlantic Margins of Ireland and Morocco and in Indonesia. The Company’s key producing and development assets are a 25% interest in the producing Kambuna field offshore Indonesia and a 50% stake in the UK Central North Sea Columbus field, under development.

Serica’s business objective centres on building shareholder value through successful exploration and appraisal drilling. Serica is also focused on improving its market liquidity, optimising its risk profile and managing the company’s portfolio of opportunities through acquisition and divestment. Serica’s strategy involves minimising its exploration drilling costs through promoted farm-outs while retaining high working interests in the potential for exploration success.

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Source: Marketwire, August 2, 2010: