Centrica is to take a 45% stake in Serica’s licence for two sea blocks in the East Irish Sea’s Doyle prospect.
Serica currently holds a 65% interest in blocks 113/26b and 27c, with Centrica taking a 45% stake in exchange for bearing Serica’s share of the exploration well-drilling costs, up to £11million.
The gas prospect, which has been matured since 2011 and is ready to drill, is expected to have a quick timeframe for processing due to work already completed there.
The deal is subject to UK government approval, and agreement with the operator of a windfarm planned for nearby. Serica said talks were at an advanced stage and expected to be completed shortly.
“We are very pleased to welcome Centrica as a new partner in this licence,” said Serica chairman Tony Craven Walker.
“Doyle is now drill ready following the completion of a recent site survey which was performed at no cost to Serica. I look forward to an early announcement of drilling. This represents the latest in a number of farm-out agreements with high quality and well respected partners further demonstrating our strategy of offering our shareholders exposure to major drilling programmes at minimum cost and risk.”
Serica had previously farmed out 35% of the licence for the blocks, which lie to the north of the Millom field and Rhyl discovery and close to the North Morecambe field and South Morecambe field, to Agora Oil & Gas before today’s deal with Centrica.
