Block 22/19c

Serica 15%, JX Nippon (Operator) 85%

Block 22/19c 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).

Well 22/19c-6 was spudded on 30 July 2010 to test the Oates prospect, a Palaeocene Forties sand stratigraphic trap.  The well encountered a good quality Forties sand reservoir, but no hydrocarbons were found and the well was plugged and abandoned. Under the terms of a farm-in agreement, Premier Oil plc paid 100% of the Oates drilling costs in order to earn a 50% interest in Block 22/19c and assumed operatorship of the licence. In May 2012, Premier transferred its entire interest to Serica, resulting in Serica holding 100% interest in the block and resuming operatorship.

In September 2012, Serica announced that it had reached agreement with JX Nippon to farm-out 85%. Under the agreement, JX Nippon will acquire an operated 85% interest in the licence, with Serica retaining 15%. As consideration, JX Nippon will carry Serica's share of all future costs associated with the licence up to and including, at JX Nippon's discretion, the drilling of an exploration well to the Jurassic or deeper.