Serica Energy plan Irish Sea drilling in Q2 following Agora farm-out deal

Serica Energy plc (TSX-V & AIM: SQZ) agreed a farm-out deal for the UK East Irish Sea Blocks 113/26b and 113/27c, containing the Conan and Doyle prospects. Agora Oil & Gas will earn a 35% interest in the blocks through the 70% financing of a 5,000ft exploration well on the Conan prospect. The proposed drilling is planned to be conducted in the second quarter of 2010.

“This is the second farm-out Serica has announced this year and it demonstrates the success of our strategy of securing large working interests in highly prospective acreage to facilitate promoted farm-outs”, Serica chief executive Paul Ellis commented, “The farm-out of both Oates and Conan further de-risks our portfolio whilst allowing us to retain a significant interest and upside exposure.”

Conan is believed to be the largest undrilled Sherwood seismic anomaly in the East Irish Sea, it is adjacent to the producing Millom gas field and the recent Rhyl gas discovery. Serica said it is a high potential Triassic Sherwood sand gas prospect covering approximately 28 square kilometres, which was identified on 3D seismic data.

According to Serica, a discovery at Conan could be developed relatively quickly as it is close to existing gas production infrastructure.

Agora Oil & Gas is a privately held hydrocarbon exploration and appraisal company. The Conan and Doyle represent the company’s first projects since it was formed in October 2009 by the founders of successful North Sea independent exploration and production company, Revus. Agora’s project financing is backed by RIT Capital Partners (LSE: RCP) and Lord Rothschild’s family, with which the company has a 5-year US$200 million agreement to fund a programme of exploration and appraisal projects in Norway and the UK.  http://www.proactiveinvestors.co.uk/companies/news/12418/serica-energy-plan-irish-sea-drilling-in-q2-following-agora-farm-out-deal-12418.html