Centrica to farm-in to two of Serica's blocks in the UK East Irish Sea

27th Jun 2013 12:10

AIM-listed oil and gas exploration and development company Serica Energy has reached agreement with Centrica through its subsidiary Hydrocarbon Resources (HRL) for the farm-out of UK East Irish Sea Blocks 113/26b and 27c in Licence P.1482, in which Serica presently holds a 65 per cent interest. Under the agreement, HRL will acquire an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica's share of costs associated with the drilling of an exploration well up to a cap of $17m. The company added that a gas prospect lying in the north of Block 113/27c, the Doyle prospect, had been fully matured as the result of work performed in 2011. Tony Craven Walker, Chairman and Interim Chief Executive of Serica, said: "We are delighted that Centrica's local experience can be utilised to drill an exploration well on the Doyle prospect." He added: "Doyle is now drill ready following the completion of a recent site survey which was performed at no cost to Serica."He added that this represented the latest in a number of farm-out agreements with partners.Serica's share price was up 13.92% to 22.50p at 12:13 on Thursday.MF