UK-based Serica Energy has reached agreement with RWE Dea, for RWE to farm into Serica's exploration license PEL 01/06 covering three blocks in the southern Slyne Basin off the west coast of Ireland. Completion is subject to the receipt of the required Irish government approvals.
Serica currently has a 100% working interest in license PEL 01/06 and has identified four prospects lying in the blocks, two of which exhibit strong amplitude anomalies and are ready to drill. Each of the prospects, if successful, reportedly has the potential to contain up to one trillion cubic feet of gas.
Serica has said that any substantial discovery in the blocks, which lie to the south of the Corrib field under development by Royal Dutch Shell, would be of major importance to securing Ireland’s energy supplies.
Under the terms of the agreement, RWE will earn a 50% working interest in PEL 01/06 in return for contributing on a promoted basis to the cost of drilling the first well under the license, scheduled for the second quarter of 2009. Serica will remain as operator and retains the remaining 50% working interest in the license.
To meet this drilling program, Serica has contracted the GSF Arctic II semi-submersible rig to drill the first well. This well will test the Triassic Sherwood sandstone reservoir expected to be encountered in the blocks and will be drilled on either the Bandon or the Boyne prospect. The Sherwood sandstone is the gas-bearing reservoir in the Corrib field lying to the north of the license.