Rig contracted to drill in 2009
LONDON, Sept. 2 /CNW/ - Serica Energy plc (AIM & TSX-V: SQZ) ("Serica" or
"the Company") has reached agreement with RWE Dea AG ("RWE") for RWE to
farm-in to Serica's exploration licence PEL 01/06 covering three blocks in the
southern Slyne Basin off the west coast of Ireland. Completion is subject to
the receipt of the required Irish government approvals.
Serica currently has a 100% working interest in licence PEL 01/06 and has
identified four prospects lying in the blocks, two of which exhibit strong
amplitude anomalies and are ready to drill. Each of the prospects, if
successful, has the potential to contain up to one trillion cubic feet of gas.
Ireland has immediate and long-term needs for local gas supplies as it
currently imports the bulk of its gas needs. Any sizeable discovery in the
blocks, which lie to the south of the Corrib field under development by Shell,
would be of major importance to Ireland's energy supplies.
Under the terms of the farm-out agreement, RWE will earn a 50% working
interest in PEL 01/06 in return for contributing on a promoted basis to the
cost of drilling the first well under the licence, scheduled for the second
quarter of 2009. Serica will remain as operator and retains the remaining 50%
working interest in the licence.
To meet this drilling programme Serica announces that it has contracted
the GSF Arctic II semi-submersible drilling rig to drill the first well. This
well will test the Triassic Sherwood sandstone reservoir expected to be
encountered in the blocks and will be drilled on either the Bandon or the
Boyne prospect. The Sherwood sandstone is the gas-bearing reservoir in the
Corrib field lying to the north of the licence. Further information on
Serica's interests in Ireland and of the Company's drilling objectives in the
licence can be found on Serica's web-site at www.serica-energy.com.
Serica Chief Executive, Paul Ellis, said:
"We are delighted to welcome RWE into our Irish exploration programme,
which is focussed on unlocking the potential which we believe exists in our
licence for the discovery of large prospective gas resources. Our activities
in Ireland form part of our strategy to identify significant undiscovered
hydrocarbon resources close to market in our two core areas. With the
combination of RWE's experience as a major European utility and Serica's
proven ability to identify and drill low-risk gas prospects, we look forward
with considerable anticipation to the start of our programme offshore Ireland
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