Operations in United Kingdom
Columbus/Oates Area
Block 23/16f – Columbus Development, Central North Sea
Serica 50% (operator), Endeavour 25%, EOG 25%
Block 23/16f covers an area of approximately 52 square kilometres in the Central North Sea and was awarded to Serica and its partners in 2005 in the 23rd Round of UK Offshore Licensing.
This block forms part of Serica’s strategy to exploit modern 3D seismic processing techniques, particularly in the Tertiary reservoirs of the Central North Sea, with the aim of increasing the chances of exploration success.
To test this technology, in late 2006 Serica drilled the Columbus discovery well 23/16f-11 to a depth of 10,116 feet subsea and encountered a gross gas column of 125 feet in the Paleocene Forties sands. The well was tested and, during the main five-hour flow period on a restricted choke of 56/64”, produced at a stabilised average rate of 17.5 million scfd and 1,060 bpd of 47.5° API condensate with a wellhead pressure of 1,200 psi. The well was suspended for potential use in the development of the Columbus field.
In 2007 Well 23/16f-12 was drilled as a vertical appraisal well approximately three kilometres north of the Columbus discovery well, and encountered gas/condensate-bearing Paleocene sands at a higher elevation than those tested in well 23/16f-11. A full evaluation of the hydrocarbon-bearing interval was carried out and reservoir fluid samples were obtained.
To further evaluate the Columbus discovery, the 23/16f-12 well was then sidetracked (as 23/16f-12z) to a bottom-hole location approximately two kilometres north of the Columbus discovery well and encountered gas/condensate-bearing Paleocene sands similar to those found in 23/16f-11. Reservoir fluid samples were obtained and the well was suspended for potential use in the development of Columbus.
In December 2008, BG International ("BG") drilled an appraisal well (23/21-7) in the northern part of Block 23/21, immediately to the south of Block 23/16f. The well comprised a total of four penetrations of the Forties sand reservoir, two of which encountered gas bearing sands with pressures similar to that found in the Columbus field. Serica is currently working with BG to finalise plans to export Columbus production via BG's Lomond platform.
Block 23/16g – Livingstone Prospect, Central North Sea
Serica 50% (operator), Endeavour 50%
Block 23/16g, a 7.4 square kilometre part-Block in the Central North Sea, was awarded to Serica in the 24th Round of UK Offshore Licensing. The Block lies immediately north of Block 23/16f and contains a small Forties sand prospect identified on 3D seismic and known as Livingstone, on trend with the Columbus discovery.
Block 22/19c – Oates & Bowers Prospects, Central North Sea
Serica 50%, Premier 50% (operator)
This Production Licence was awarded to Serica in the 25th Round of UK Offshore Licensing. It occupies an area of approximately 150 square kilometres in the Central North Sea, approximately 20 kilometres west of Block 23/16f (Columbus discovery). Serica has evaluated the prospectivity of Block 22/19c and identified two Palaeocene Forties sand prospects known as Oates and Bowers.
The Oates prospect is considered low risk and exhibits a well-defined amplitude response on the 3D seismic data, similar to that seen in the Columbus field, in which three successful wells have been drilled by the Company. The prospect has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found.
On 5 January 2010 Serica announced that it had reached agreement with Premier Oil plc (“Premier”) for the farm-out of 22/19c. An exploration well on the Oates prospect, funded by Premier, is planned to be drilled to a depth of approximately 10,000 feet. In return for this funding, Premier will earn a 50% interest in the Block and will assume the role of operator. Serica will retain the remaining 50% interest. The Oates exploration well is expected to be spudded in July 2010.