AIM-LISTED Serica Energy has been awarded further acreage in the Irish sector of the Atlantic Frontier comprising Rockall Basin blocks 5/17, 5/18, 5/22, 5/23, 5/27 and 5/28.
Licence FEL 1/09 lies in the north-eastern part of the 100,000sq km Rockall Basin and the six blocks cover a total area of 993sq km – almost 1% of a sector in which just three exploration wells have been drilled to date.
Of these, the 12/2-1 Dooish gas-condensate discovery, drilled by Enterprise Oil in 2002 and since prospected further by Shell, lies about nine kilometres to the south of Serica’s latest licence and encountered a 214m hydrocarbon column. However, Shell has remained silent about the results of its work.
A 3D seismic survey of FEL 1/09 has already been acquired and Serica says it will reprocess this data in order to enhance its understanding of the principal prospect, a structure known as Muckish, which covers an area of some 30sq km in a water depth of 1,450m.
Sandstones of Permo-Triassic age are the principal reservoir targets and are expected to be encountered about 4,000m below sea level at the Muckish prospect. Serica estimates that Muckish offers the potential of some 675billion cu ft of gas equivalent, although the company warns that, given the frontier nature of the area, it is also possible that the structure could contain oil.
The probability of technical success for the Muckish prospect has been estimated at about 20%.
An exploration well could cost $50-60million, according to Serica, which currently holds 100% of the licence. However, to reduce risk and reduce cost exposure, the company says it would seek to bring in one or more partners before electing to drill a well.
It is only a few weeks since Serica discovered oil with its first exploration well west of Ireland on the Bandon prospect. The semi-submersible, Ocean Guardian, drilled the well in Slyne Basin frontier licence 1/96, encountering oil in unspecified volumes in Jurassic and Sherwood intervals.
Those same Sherwood sandstones are the source of Shell’s Corrib gas field just a few kilometres to the north and it had been widely expected that Bandon would also prove up gas.
In fact, according to Serica, Bandon turned out to be the first oil find anywhere on the Irish Atlantic Frontier for nearly 30 years, and further drilling is planned.
Serica CEO Paul Ellis said of the award: “The award of this new licence in the Rockall Basin represents a significant addition to Serica’s exploration position in Ireland, following our recent Bandon oil discovery in the Slyne Basin.
“Several of Serica’s present staff were involved in the Corrib and Dooish discoveries west of Ireland while at Enterprise Oil and have a detailed knowledge of exploration and operations in the Atlantic Margin of Ireland.”
In order to learn more about the hydrocarbon potential of FEL 1/09, Serica is to acquire several 2D long-offset seismic lines across the Muckish structure.
In the initial licence phase of four years, Serica is committed to carry out geological and geophysical studies and to acquire 400km of long-offset 2D seismic data.
To extend the licence into subsequent phases, Serica would be required to commit to a programme of exploration drilling.