OilVoice - Serica Announces Spain Onshore Exploration Farm-in Opportunity

Serica Announces Spain Onshore Exploration Farm-in Opportunity

Saturday, February 27, 2010

Serica Energy is seeking partner(s) to farm-in to the Pueyo Prospect Ebro Basin prospect, onshore Spain.

Overview:
Pueyo is a four-way closure defined on modern 2D seismic data located in the onshore Ebro Basin with a GIIP of 100bcf.

The adjacent Pueyo East prospect also has a GIIP of 100bcf and a further 300bcf is identified within deeper targets.

The reservoir target in Pueyo comprises Cretaceous limestones as proven in the Centenera discovery drilled 30km to the NE. Recent work has de-risked Pueyo by establishing the presence of potential Eocene source rocks as penetrated in the Huesca-1 well just 5km NE of Pueyo as the same age as source rocks which generated the gas found in Centenera and Serrablo.

A well to 1500m is required to test the prospect at an estimated cost of $4.5million. Given the attractive fiscal terms in Spain (37.5% tax take), proximity of a gas pipeline within the licence and the low well costs of Pueyo an NPV of $281 million is calculated.

Serica is planning to drill the Pueyo prospect in 2011 and has 50% equity available for a farminee.

Serica has a stand at the APPEX conference in London next week (2nd to 4th March) and will be pleased to explain the project in more detail.