North Sea block map

Centrica 45% (operator), Serica 20%, MPX 25%, Agora (Cairn) 10%

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 Millom field and west of the Rhyl discovery, 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.

Following a farm-out to Agora Oil & Gas (UK), which reduced Serica's interest in the blocks to 65%, Serica drilled the Conan prospect in May 2010. No hydrocarbons were encountered and the area around the prospect was subsequently relinquished. The blocks now cover a total area of approximately 73 square kilometres.

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. The other participants in the Block 113/22a are HRL 45% (and operator), MPX Limited 25% and Agora Limited (a subsidiary of Cairn Energy) 10%.

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.