Serica 5%, Genel (Operator) 60%, San Leon 10%, ONHYM 25%
Main Prospects and Leads
The Sidi Moussa Petroleum Agreement covers an area of 5,019 square Kilometres and lies in water depths between 200 and 1,250 metres. The area is located approximately 75 kilometres south west of Agadir. A number of leads and prospects are evident on 2D and reprocessed 3D seismic data.
In August 2012, the Company and its partners reached agreement with Genel Energy to farm-out a combined 60% equity interest in Sidi Moussa, in return for paying the first US$50 million of the cost of drilling an exploration well. Following the farm-out Serica has a 5.00% working interest in the Sidi Moussa licence. Serica’s partners are Genel, San Leon Energy and ONHYM.
The SM-1 well was drilled by Noble Paul Romano semi-submersible drilling rig in 3Q 2014 to evaluate the Nour Prospect, a tilted fault block mapped at Upper Jurassic level. The well was drilled to a total depth of 2,825 metres sub-sea and encountered oil in fractured and brecciated cavernous Upper Jurassic carbonates. During the course of drilling and well control operations, 26 degree API oil was produced to surface along with the drilling fluids. A subsequent testing programme confirmed the presence of oil but it was not possible to achieve all of the objectives of the testing programme, most likely as a consequence of the significant reservoir damage suffered during the earlier well control operations. Subsequent evaluation of the drilling and testing results determined the discovery as non-commercial and the well was been plugged and abandoned.
The operator of the licence identified a follow on prospect and was considering a second well. Serica elected not to participate in this well, but retained an option to buy back in on agreed terms with access to all well data. The operator has since not committed to drilling the well, but is instead in discussions with the Moroccan government to undertake an alternative work programme. In view of this course of action, the materiality of a 5% interest and in line with Serica’s view of the costs and benefits of retaining an interest, Serica is now in the process of relinquishing its interest in the licence.