LONDON (Alliance News) - Serica Energy PLC and San Leon Energy PLC Thursday said that the operator of the Sidi Moussa license offshore Morocco, Genel Energy PLC, had told them it has started drilling the SM-1 well.
The Sidi Moussa licence extends over an area of over 5,000 square kilometres, approximately 75 kilometres south west of Agadir.
Serica Energy holds a 5% interest in the licence and is carried on the drilling costs of the well up to a gross cap of USD50 million with an expected limited contribution above this level. San Leon holds an 8.5% interest and is also carried on the drilling costs of the well up to a gross cap of USD50 million.
"Morocco remains one of the last under-explored regions of North Africa and the spudding of the SM-1 exploration well is another step towards our understanding of this basin's hydrocarbon potential," San Leon Chairman Oisin Fanning said in a statement.
The companies said the drilling of the well is expected to take between 60 and 90 days to complete.
Genel is the operator of the license and holds a 60% net operated interest, Longreach Oil & Gas holds 1.5% and ONYHM, the Moroccan National Bureau of Petroleum and Mines, holds a 25% interest.
Serica Energy shares were down 2.4% at 13.30 pence Thursday morning, while San Leon was up 3.3% at 2.63 pence.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Genel Energy (GENL)
San Leon (SLE)
Serica Energy (SQZ)