In December 2013, Serica was awarded a 35% operated interest in Block 113/22a (Licence P2124), as part of the UK 27th Offshore Licensing Round. Work commitments include obtaining 150 kilometres of 2D seismic data and a drill or drop decision on a well within three years.
This block is adjacent to Serica Block 113/27c, and contains the nortern extension of the Doyle Triassic gas prospect, a fault and dip closed structure. In August 2014, following the receipt of the required approvals, the Company announced the completion of an agreement with Centrica, through Centrica’s subsidiary HRL, for the farm-out of blocks 113/26b and 27c. In view of the extension of the Doyle prospect into Block 113/22a the farm-out agreement extended to Block 113/22a.
As a result, Serica now has a 20% interest both in Block 113/22a and in adjacent Blocks 113/26b & 27c carried through the first well on the Doyle prospect subject to a gross cap on well costs of £11 million.