Serica was awarded a 100% interest in blocks 113/26b and 113/27c (collectively Licence P1482) in the UK 24th Offshore Licensing Round in 2007.
The blocks lie in the East Irish Sea immediately to the north of the producing Millom and Rhyl fields, close to the North Morecambe field and South Morecambe field, which is one of the UK’s largest gas fields. The prospective reservoir is the Sherwood Sandstone of Triassic age that is also the producing reservoir in all of the East Irish Sea fields.
In June 2013, Serica reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited (“HRL”) to farm-out an operated 45% interest, which reduced Serica's interest in the blocks to 20%. In consideration, HRL will bear Serica’s share of costs associated with the drilling of an exploration well up to a gross cap of £11 million. The agreement was completed in August 2014.
Exploration in the licence is focused on the Doyle prospect in the north of Block 113/27c which extends into neighbouring block 113/22a in which Serica also has a 20% interest following the farm-out to HRL. Doyle is a large tilted fault block structure exhibiting a possible ‘flat spot’ consistent with the mapped closure of the prospect.