EXPLORATION

Significant exploration upside

BLOCK 22/19C

Serica 15%, ENI 40% (operator), JX Nippon 25%, Mitsui 20%

Rowallan location: UK Central North Sea

KEY
Gas Field Gas Condensate Field
Oil Field Oil Field
Serica Blocks Serica Blocks
Prospects Prospects

The Rowallan prospect is located in the east of Block 22/19c, and comprises a significant structural fault and dip-closed trap analogous to the large Culzean field development located 20km to the SSE.

Serica’s net Rowallan resource is estimated at 20 to 60mmboe (P50 and P10 respectively).

The reservoir comprises high-quality sandstones at both Middle Jurassic and Triassic levels, which are optimally situated for hydrocarbon charge from the direction of the nearby Monan and Mungo oil fields. 

In the event of success, there is upside in the nearby Dundonald and Sundrum prospects, which are geologically similar to Rowallan.

Serica is fully carried on a Rowallan exploration well which is planned for 2018.

Licence FEL 1/09, Muckish and Muckish East Prospects

Serica 100% (operator)

FEL/109

Serica holds a 100% interest in Licence FEL 1/09, comprising six blocks, awarded to the Company during the Irish Rockall Licencing Round in July 2009.

FEL 1/09 covers a total area of 390 square kilometres and lies in the north-eastern part of the offshore Rockall Basin, a deep-water basin west of Ireland.

Blocks 5/22 and 5/23 lying within licence FEL 1/09 contain a very large fault block prospect (Muckish) covering an area of approximately 30 square kilometres, with over 600 metres of vertical closure in a water depth of 1,450 metres. Internal Serica estimates attribute P50 most likely recoverable resources of 1,285 bcf of gas and 85 mmbls of condensate. Serica's high case P10 resource estimate is 227 mmbbls of condensate and over 3 tcf of gas.

Although gas or gas-condensate is considered to be the most likely hydrocarbon phase that could be found, oil is also possible.  Muckish is analogous to the nearby gas-condensate bearing Dooish structure drilled by Enterprise in 2002, which encountered a 214-metre hydrocarbon column. Two further prospects, Muckish East and Mackoght, have also been identified in the licence area and are obvious follow-up prospects in the event of success at Muckish.

The Company has developed plans to test drill the Muckish prospect and is seeking farm-in partners to share the drilling cost


Licence FEL 4/13 Aghla More, Derryveagh & Aghla Beg Prospects

Serica 100%

LICENCE FEL 4/13 Aghla More, Derryveagh & Aghla Beg Prospects

FEL 4/13 contains two large pre-Cretaceous prospects, Aghla More and Aghla Beg. Aghla More is the larger of the two prospects and is a tilted fault block with seismic character suggesting a reservoir analogous to the nearby Dooish Discovery. It has an areal closure of 61 square kilometres, and has the potential for P50 reserves of 1.4 tcf of gas and 94 mmbls of condensate (Serica estimate). Aghla Beg is a newly-recognised fractured basement play, with a seismic character analogous to the Lancaster and Clair fields, UK Atlantic, West-of-Shetlands. It has a potential for P50 reserves of 762 bcf and 50 mmbls of condensate (Serica estimate). Both the Aghla More and the Aghla Beg prospects complement the large Muckish prospect lying in Serica’s acreage to the northeast.

In-house analysis of Serica’s extensive seismic database has also indicated the presence of turbidite fans, the largest of which, the Derryveagh Prospect, is draped over the top of the Aghla More Prospect; both Aghla More and Derryveagh targets could be tested with a single vertical exploration well. Derryveagh has the potential for P50 reserves of 1,276 bcf of gas and 84 mmbls of condensate (Serica estimates).

Recent geochemical analysis of the condensate fluid from the Dooish Discovery has shown that it has originated from an Upper Jurassic Kimmeridge Clay type source rock. Seismic mapping shows that the Upper Jurassic surrounds or underlies Serica’s prospects and is therefore ideally located to charge them with hydrocarbons.

Given the size of the prospects and their position in a proven gas-condensate bearing basin, the Licence significantly expands the options open to Serica to deliver an active drilling campaign in the area.

Under the terms of the FEL 4/13 Licence, Serica has completed 3D seismic reprocessing work and a number of geological studies to firm up all three prospects. Serica is seeking farm-in partners in conjunction with Licence FEL1/09 to take the exploration programme to the next stage.


Licence FEL 1/06, Boyne, Achill & Liffey Prospects

Serica 100%

LICENCE FEL 1/06, Boyne, Achill & Liffey Prospects

Serica operates Irish Frontier Exploration Licence FEL 1/06, comprising blocks 27/4 (part), 27/9 (part) and 27/5 (part), which together cover an area of 305 square kilometres in the Slyne Basin off the west coast of Ireland.

   The blocks lie some 40km south of the Triassic Sherwood Sandstone Corrib discovery, which has reserves of approximately 800 bcf of gas.

As a result of reprocessing approximately 1,000 square kilometres of 3D seismic, four large Triassic Sherwood Sandstone gas prospects were originally mapped: Bandon, Boyne, Achill and Liffey. 

Well 27/4-1 was spudded in May 2009 to test the Bandon prospect and reached a total depth of 1,871 metres in the Triassic Sherwood Sandstone. An oil accumulation in Jurassic sands was encountered and a sidetrack well 27/4-1z was drilled to confirm the discovery. Oil samples were taken in both wells for analysis. The discovery of oil has opened a new oil play in the Slyne Basin and enhanced the prospectivity of the blocks. Two deeper Jurassic oil prospects have now been identified at Boyne and Liffey, each with an underlying gas prospect in the Sherwood as proven by the Corrib field.

Site surveys have been completed on the Boyne and Liffey prospects to follow up on the presence of oil discovered by Serica on the blocks. A well is planned to test the Boyne prospect subject to the outcome of a current farm-out campaign to seek an additional drilling partner.

Luderitz Basin, Blocks 2512a, 2513a, 2513b & 2612a (part)

Serica 85% (operator), NAMCOR 10%, IEPL 5%

Namibia

Blocks 2512A, 2513A, 2513B and 2612A (part) lie wholly within the Luderitz Basin and cover an area of 17,384 square kilometres. Serica has an 85% working interest in the blocks and is looking to secure partners to jointly explore what it believes to be a highly prospective frontier basin with world-class potential. Serica’s partners in the licence area are National Petroleum Corporation of Namibia (Pty) Limited (NAMCOR) (10%), and Indigenous Energy (Pty) Limited (5%).

Three large four-way dip-closed structures (prospects A, B and C) have been identified in the blocks with stacked reservoir potential at Lower Cretaceous, Upper Cretaceous and Palaeocene levels, each with mapped closures well in excess of several hundred square kilometres. In addition, further prospects and leads have been identified within canyon - channel and shelf edge plays, with the potential for trapping significant hydrocarbon volumes in stratigraphic pinch-outs.

Two prospects (mapped on high-quality, extensive 3D seismic data shot by Serica in 2012) have been high-graded for drilling: Prospect B and Prospect F:

Prospect B comprises a very large Lower Cretaceous carbonate platform with an areal closure of 700 square kilometres and vertical closure of over 300m. The prospect has a gross recoverable resource (P50 – P10) of 700-4,500 mmbls oil (Serica estimate).

Prospect F is a Lower Cretaceous shelf-edge stratigraphic trap supported by a seismic (AVO) anomaly that is indicative of porous, hydrocarbon-bearing clastic reservoir. It has a gross recoverable resource estimate (P50 – P10) of around 200-500 mmbls of oil(Serica estimate). There are similar prospects around Prospect F, at least one of which lies directly below and could be drilled with the same exploration well.

Prospect B is draped by the Lower Cretaceous Kudu Shale oil-prone source rock, while Prospect F lies directly up-dip of the same source interval. This source rock is very thick, organic-rich, and has now been proven by a number of wells drilled offshore Namibia. Serica is currently seeking farm-in partners for its Namibia licence.