Serica Energy has been awarded Frontier Exploration Licence FEL1/09 covering Blocks 5/17, 5/18, 5/22, 5/23, 5/27 and 5/28 (the "Licence") in the Rockall Basin off the west coast of Ireland. Serica is the Licence operator and holds a 100% working interest.

Licence FEL 1/09 lies in the northeastern part of the offshore Rockall Basin and the six blocks cover a total area of 993 square kilometres. The Rockall Basin has an areal extent of over 100,000 square kilometres in which only three exploration wells have been drilled to date and the basin is therefore regarded as very underexplored. Of these exploration wells the 12/2-1 Dooish gas-condensate discovery, drilled by Enterprise Oil in 2002, lies approximately nine kilometres to the south of the Licence and encountered a 214 metre hydrocarbon column.

A 3D seismic survey has already been acquired and Serica will reprocess this data in order to enhance its understanding of the principal prospect, a structure known as Muckish that covers an area of approximately 30 square kilometres in a water depth of 1,450 metres. Serica estimates that Muckish has a most likely prospective resource of 675 billion cubic feet of gas equivalent although, given the frontier nature of the area, it is also possible that the structure could contain oil. In order to learn more about its hydrocarbon potential, Serica will acquire several 2D long-offset seismic lines across the Muckish structure.

The Licence is classed as a Frontier Exploration Licence and may be held for up to sixteen years subject to work programme and relinquishment requirements. On a commercial discovery a Petroleum Lease will be granted. In the initial Licence phase of four years Serica is committed to carry out geological and geophysical studies and to acquire 400 kilometres of long-offset 2D seismic data.

Serica CEO Paul Ellis said, "The award of this new Licence in the Rockall Basin represents a significant addition to Serica's exploration position in Ireland, following our recent Bandon oil discovery in the Slyne Basin. Several of Serica's present staff were involved in the Corrib and Dooish discoveries west of Ireland whilst at Enterprise Oil and have a detailed knowledge of exploration and operations in the Atlantic Margin of Ireland. The award is a further example of Serica's strategy to access acreage where 3D seismic data is already available, which enables exploration drilling to take place at an early stage."

Tags: Serica Energy plc