LONDON (Alliance News) - Serica Energy PLC on Thursday said it was "disappointed" as the Rowallan exploration well in the central North Sea, offshore UK, was not found to be hydrocarbon bearing.
Serica holds a 15% stake in the Rowallan well. It is operated by Eni UK Ltd, part of Italian oil major Eni SpA, holding a 32% interest.
The well was drilled to a depth of 4,641 metres and encountered a 182 metres section of sandstone and shale, which however did not meet hydrocarbons.
The well, which was drilled on time and on budget, will now be plugged and abandoned, Serica said.
The company added that since it was fully carried, it did not pay for any of the costs of the well.
"We are naturally disappointed that the well has not encountered hydrocarbons. We will now assess the valuable data acquired before deciding the forward plan for the remaining prospects on block 22/19c and adjacent blocks," Serica Chief Executive Mitch Flegg said.
He added: "This result justifies our policy of reducing financial exposure to exploration risk by means of farm-out. In this case we were fully carried and did not pay anything towards the cost of the well."
Other partners in the Rowallan well were JX Nippon with a 25% interest, Mitsui and Equinor with 20% and 8% respectively.
Serica Energy shares were trading up 3.0% at 114.14 pence each, after trading as low as 104.5p on Thursday.
Eni Ord (0N9S)
Serica Energy (SQZ)