SERICA has reached an agreement with Agora Oil & Gas (UK) for the farm-out of UK blocks 113/26b and 113/27c, which contain the Conan and Doyle prospects and in which Serica presently holds a 100% interest.
Serica said that an exploration well on the Conan prospect, to be 70% funded by Agora, should be drilled in Q2 this year to a depth of about 1,520m (5,000ft).
In exchange for paying the cost of the probe, Agora will earn a 35% interest in the two blocks, with Serica retaining the remaining 65% interest and operatorship of the acreage.
Conan is touted as a high-potential Triassic Sherwood sand gas prospect identified on 3D seismic data and covering an area of some 28sq km.
It is adjacent to the producing Millom gas field, and to the recent Rhyl gas discovery. Therefore, being close to existing gas production infrastructure, a discovery at Conan could be developed rapidly.
Paul Ellis, Serica’s CEO, said of the Agora deal: “I am very pleased that we have reached agreement with Agora to farm-out the Conan prospect.
“The farm-out of both Oates and Conan further de-risks our portfolio while allowing us to retain a significant interest and upside exposure.”
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