UPDATE 1-Serica Energy receives North Sea exploration licence

* Says licence valid for period of up to 26 years

* Says must drill a well within initial four years

* Says Oates prospect considered low risk

* Shares up 3 pct

(Adds details)

June 25 (Reuters) - Oil and gas explorer Serica Energy Plc (SQZ.L)(SQZ.V) said on Thursday it was awarded a 26-year exploration licence in the UK North Sea.

Serica said the licence, over block 22/19c, contained two prospects -- Oates and Bowers.

The company said the Oates prospect was considered low risk and has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found.

The probability of technical success for the Oates prospect has been estimated at around 40 percent, said the company, which is the licence operator and holds a 100 percent working interest.

The company said it was committed to drill a well during the initial term of four years, and expects to drill the well within the first twelve months of the licence.

The planned exploration well at the Oates prospect is estimated to cost $20 million, Serica said.

Serica shares were up 3 percent at 60 pence at 1027 GMT on the London Stock Exchange. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Aradhana Aravindan)