5th Aug 2014 07:35
LONDON (Alliance News) - Serica Energy PLC Tuesday said it has completed the farm out of UK East Irish Sea blocks with Centrica PLC through the latter's Hydrocarbon Resources Ltd subsidiary.
Under the deal, Hydrocarbon Resources has bought a 45% interest in the licence, which covers blocks 113/26b and 113/27c, with Serica to retain 20%. Hydrocarbon will take on Serica's share of the costs associated with drilling an exploration well at the site, up to a gross amount of GBP11 million.
In addition, Hydrocarbon Resources will take a 15% stake and operatorship in the adjacent Block 113/22a, aligning the equity interests across the two licences.
The Doyle gas prospect, which lies north of block 113/27c and extends to block 113/22a, is ready to drill, with the site survey complete and planning for the exploration well under way.
"We are extremely pleased to complete this agreement and look forward to confirming the drilling of the Doyle well in the near future," said Serica Energy CEO and Chairman Tony Craven Walker.
"In the event of a commercial discovery, Doyle is ideally placed for a fast-track development and early gas production due to available capacity in nearby infrastructure," Craven Walker added.
Serica shares were up 1.7% to 13.85 pence early Tuesday, while Centrica shares were up 0.6% at 308.90p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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