The blocks 3/24c and 3/29c, located in in the North Sea, contains the North Eigg and South Eigg prospects respectively
Image: Serica Energy awarded 100% interest in blocks 3/24c and 3/29c. Photo: courtesy of D Thory from Pixabay.
British oil and gas production company Serica Energy’s subsidiary Serica Energy (UK) has been awarded 100% stake in two UK petroleum blocks in the licence P2501 in the North Sea.
Located adjacent to Serica-operated Rhum field in the North Sea, the blocks 3/24c and 3/29c contain the North Eigg and South Eigg prospects respectively.
Serica said that the North Eigg is a primary prospect with estimated resources of 360 billion cubic feet of gas (bcf) and potentially over 1 trillion cubic feet (Tcf) of recoverable gas.
The North Eigg prospect, however, is interpreted to share many geological similarities with the Rhum field, the firm noted.
Serica Energy plans to drill one exploration well
In the next three years, the company plans to drill one exploration well. In case of a commercial discovery, the field will be developed as a subsea tie-back to the Serica-operated and 98% owned Bruce facilities platform in order to reduce unit operating costs and extend the economic life of the asset.
Serica Energy chief executive Mitch Flegg said: “Since we completed our acquisition of the Bruce, Keith and Rhum (“BKR”) assets just over a year ago, our strategy has been to optimise economic returns through a hub strategy that includes operating efficiencies, investment and securing new third-party business in the BKR catchment area.
“Not only is this award an important step in our BKR hub strategy, it reinforces exploration as a material part of Serica’s upstream business.
“These are exploration prospects and so there is no guarantee of success. In the event of a commercial discovery, the optimal development option will be a tie-back to the Bruce platform, which we would seek to fast track.
“In the meantime, our other efforts to enhance the value of the BKR assets will continue unabated. These include planning for the rig intervention in 2020 designed to bring the Rhum-3 well into production for the first time and efforts to bring new third-party business to the Bruce facilities.”
Serica is the operator of the adjacent P198 licence, which comprises block 3/29a and contains the producing HPHT Rhum Field.
In November 2019, Serica Energy (UK) agreed to acquire a 16% interest in the Bruce field and a 31.83% interest in the Keith field and associated infrastructure (BHP Assets) in the UK North Sea from BHP Billiton Petroleum Great Britain (BHP).