The agreement is subject to the UK government approval. An exploration well on the Oates prospect, funded by Premier, is planned to be drilled in the middle of 2010 to a depth of approximately 10,000ft. In return for this funding, Premier will earn a 50% interest in Block 22/19c and will assume the role of operator. Serica will retain the remaining 50% interest.
The Oates prospect is Palaeocene Forties sand stratigraphic trap identified on 3D seismic data and is similar in nature to a number of other nearby Forties sand fields such as Huntington, Montrose and Columbus. Columbus was discovered by Serica in 2006 and is now in the final stages of development planning.
Serica is also in the final stages of negotiating a farm-out of its Conan prospect in East Irish Sea Blocks 113/26b and 113/27c, in which the company currently holds a 100% interest. Under the terms of this agreement, Serica will farm out a 35% interest in the license for which the farminee will contribute 70% of the costs of the well. Serica will remain as operator and will retain a 65% interest.
Paul Ellis, CEO of Serica, said: ”I am delighted that we have agreed the farm-out of Oates with Premier as it enables the drilling of an exciting well at no cost to the company.
“Premier is an experienced operator in the Central North Sea and we look forward to developing this new relationship and building further success for Serica. Oates and Conan are prospects of high potential and we look forward to seeing the results of both wells this year. ”
