Moroccan black gold scored for Serica

Published on Friday 19 June 2009 21:06

SMALL BUT BEAUTIFUL

SERICA Energy was yesterday granted two offshore exploration permits by the Moroccan government.

Under the eight-year agreements, Aim-listed Serica will explore the Sidi Moussa and Foum Draa areas within the Agadir Basin, about 100km south west of the city of Agadir.

Both areas are on the Atlantic margin, which Serica said "is geologically analogous to and on trend with the oil producing salt basins of west Africa".

Morocco has an "attractive fiscal regime relative to other north and west African oil and gas producing countries", according to Serica, which highlighted the 10 per cent royalty on oil production and 5 per cent royalty on gas production.

Corporation tax of 35 per cent is only payable after a ten-year tax holiday, the company added.

Paul Elis, chief executive of Serica, which has a market cap of about 100 million, said: "Following our recent oil discovery in the Atlantic Margin offshore Ireland, we are delighted to have secured a large and under-explored area of the Atlantic margin offshore Morocco.

"I am confident that Sidi Moussa and Foum Draa will provide us with some exciting exploration drilling opportunities."