Genel, San Leon and Serica Energy strike oil in Morocco

20th Oct 2014 08:03

A well off the coast of Morocco has struck oil, partners Genel Energy, San Leon Energy and Serica Energy said.The SM-1 well in the Sidi Moussa block, which is operated by Genel, has reached a total depth of 2,825 metres and preparations are now underway to begin testing at a cost of $22m.Genel owns a 60% operating interest in the block, while San Leon holds 10% and Serica 5%.Executive chairman of AIM-listed San Leon, Oisin Fanning, said: "Testing the SM-1 well aims to evaluate the structure and its hydrocarbon potential as much as possible at this stage of early exploration and we look forward to updating the market with the results once these are available."Genel added that it would be "premature" to offer any definitive technical interpretation at this stage, but said an update would be given once operations were complete.Genel's share price dropped 0.7% to 709p, but San Leon leapt 9% to 2.45p and Serica jumped 9.84% to 13.32p.