Serica Energy plc (TSX: T.SQZ
) said that it has reached an agreement with Centrica plc (CPYYY
) through its subsidiary Hydrocarbon Resources Ltd. (HRL) for the farm-out of UK East Irish Sea Blocks 113/26b and 27c, in which Serica presently holds a 65% interest.
According to the Serica press release
, 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.
Serica is an international oil and gas exploration and development company.
On Thursday, Serica was trading at $0.40 a share. The company had a market cap of $73.1 million, based on 182.8 million shares outstanding.