Serica Energy plc announces that it has reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited (“HRL”) for the farm-out of UK East Irish Sea Blocks 113/26b and 27c (Licence P.1482), in which Serica presently holds a 65% 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 $17 million.

A gas prospect lying in the north of Block 113/27c, the Doyle prospect has been fully matured as the result of work performed in 2011 and is ready to drill. The site survey for this prospect has recently been completed at no cost to Serica. As plans for the well are ready for early drilling, a fast track timeframe announcement for this is also expected shortly.

The agreement is subject to UK government approval. Completion also requires agreement with the operator of a wind farm planned nearby.

However this is now at an advanced stage with final agreement expected shortly.

Press Release, June 27, 2013; Image: Serica