Serica Energy Regulatory News (SQZ)

13 Dec 2005 08:00

Serica Energy plc13 December 2005 SERICA ENERGY PLC ("Serica" or the "Company") FIRST DAY OF UNCONDITIONAL DEALINGS ON AIM 13 December 2005 - Serica, an international oil and gas exploration company withprincipal activities in the UK North Sea, Indonesia and Spain, announces thatthe Company's Ordinary Shares of US$0.1 each have today been admitted to tradingon the AIM Market of the London Stock Exchange ("AIM"). The Company's tradingsymbol is "SQZ". Admission Details • 67,368,421 Ordinary Shares have been conditionally placed with investors by JPMorgan Cazenove, the Company's Nominated Adviser and UK Broker, to raise £64.0 million (before expenses) for the Company. • On admission to AIM a total of 142,548,580 shares were in issue capitalising the Company at £135.4 million at the placing price of 95p per share. • The Company is also quoted on the TSX-V Exchange (TSX-V: SQZ). Unless permitted by Canadian securities legislation, the new Ordinary shares may not be traded in Canada before 14 April 2006. Use of Proceeds • On 6 October 2005 the Company announced the successful drilling of the Kambuna-2 well, offshore Northern Sumatra. Serica plans to submit a preliminary plan of development for the Kambuna Field, in which it is operator and has a 55 per cent. working interest, by year end. • Following this success, funds will be used to finance Serica's planned exploration, appraisal and development program over the next 24 months, principally on operated blocks where Serica has substantial interests - In 2006 and 2007, the Company estimates that it will spend US$60 million on its exploration and appraisal program and a further US$34 million on the development of the Kambuna Field, and of the Singa Field in Southern Sumatra - Eleven exploration or appraisal wells are planned over the period - The Gaffney, Cline & Associates Ltd Competent Person's Report confirms the potential for drilling prospects to add significantly to the Company's reserve base - Appraisal and development over next 24 months will accelerate Serica's objective of bringing its four discoveries onto production Key Strengths The Directors consider the key strengths of Serica to be: • Highly experienced management with sustained record of creating value for shareholders and particular knowledge of the areas in which Serica operates • Operator with working interests of 50-100 per cent. in all of its properties other than in the Lematang PSC • A diverse portfolio including existing oil and gas discoveries and ready to drill exploration prospects as detailed in the Gaffney, Cline & Associates Ltd Competent Person's Report: - Four existing discoveries - Two near-term development opportunities with production targeted to commence in 2008 - Thirty-two prospects and leads, which require further evaluation, including seismic and drilling Tony Craven Walker, Chairman of Serica, commented: "Serica's technical team has assembled a portfolio of exploration properties,in Indonesia, the UK North Sea and in Spain, which have considerable upsidepotential. The successful outcome of Kambuna-2 and Togar-1A, our first two wells drilled asoperator, highlights this potential. Our admission to AIM and the accompanying fundraising gives Serica the financialresources to explore, appraise and develop its quality asset base which has thepotential to generate material value for shareholders." 13 December, 2005 A copy of the Gaffney, Cline & Associates Ltd Competent Person's Report isavailable on the Company's website: www.serica-energy.com, and on SEDAR;www.sedar.com Enquiries: Serica Energy plcPaul Ellis, Chief Executive Officer +44 (0)20 7487 8252Chris Hearne, Finance Director +44 (0)20 7487 8252 JP Morgan CazenoveSteve Baldwin + 44 (0)20 7155 2828 Pelham Public RelationsJames Henderson +44 (0)20 7743 6673 +44 (0)7774 444163 EDITORS' NOTES Management Tony Craven Walker, aged 62, non-executive Chairman Tony Craven Walker joined Serica as non-executive Chairman in August 2004. Hehas been a leading figure in the British independent oil industry since theearly 1970s. During his 39 year career in the oil and gas industry he hasfounded two British independent oil companies, Charterhouse Petroleum plc whichwas acquired by Petrofina for £140 million in 1986, and Monument Oil and Gas plcwhich was acquired by Lasmo for approximately £600 million in 1999. He was ChiefExecutive of Charterhouse Petroleum and Monument and became Chairman of Monumentin 1997. Tony Craven Walker was a founder member of BRINDEX (The Association ofBritish Independent Oil Exploration Companies), formed in 1974 as the officialvoice of British Independent oil and gas exploration companies, and was aleading officer of the Association for many years. Paul Ellis, aged 59, Chief Executive Officer Paul Ellis joined Serica as Chief Executive Officer in September 2005. He has 35years of experience within the areas of exploration, production, development andmanagement of international oil and gas ventures. He joined Serica from EmeraldEnergy plc, a United Kingdom listed company with operations in Colombia, whereas Chief Operating Officer, he was instrumental in the rapid and successfulexpansion of the company's exploration and production interests. He has heldpositions as a director or senior executive of a number of public companies suchas Charterhouse Petroleum and British Gas in the United Kingdom, where he wasTechnical Director and Director, International E&P respectively, and PanCanadianPetroleum (now Encana) in Canada where he was Senior Vice PresidentInternational. In assuming these senior roles, Paul has held technical andfinancial responsibility for new ventures and projects in over 20 countries. Chris Atkinson, aged 47, Chief Operating Officer Chris Atkinson is a founder of the Group with 23 years of varied experience inthe international oil and gas industry. He has a significant track record ofacquiring high quality exploration acreage on which several discoveries haveultimately been made. He joined Shell in April 1983 at its KSEPL RijswijkResearch Laboratory and then spent a further 15 years at ARCO Oil and GasCompany (Atlantic Richfield) in a variety of senior management positions inIndonesia, UK and Europe and was Exploration Director of ARCO British andExploration Vice President, Europe and North Africa when he left in 2000. Chris Hearne, aged 40, Finance Director Chris Hearne joined Serica in January 2005 from Intrepid Energy & Co., a leadingindependent exploration and production company in the UK North Sea, for which hewas corporate finance manager for eight years. In this capacity, he contributedto the growth of Intrepid from a start-up company to its recent sale for overUS$1 billion. Prior to joining Intrepid, he worked as an investment banker withLehman Brothers and Robert Fleming & Co. Ltd. Jim Steel, aged 72, non-executive Director Jim Steel joined Serica as a non-executive Director in June 2004. He has beeninvolved in the oil and gas industry since 1961 when he was appointed legaladviser to BP Canada Limited. Between 1961 to 1968 he has held a variety ofpositions at The British Petroleum Company and BP Canada Ltd. From 1968 to 2005he practiced as a corporate, commercial and oil and gas lawyer in Calgary,Alberta. Neil Pike, aged 60, non-executive Director Neil Pike joined Serica as a non-executive Director in August, 2004. He has beeninvolved in the global petroleum business as a financier since joining theenergy department of Citibank in 1975. Neil remained an industry specialist withCitibank throughout his career, based in either London or New York, and wasclosely involved in the development of specialised oil field financing in the UKNorth Sea and North America, and whose practices were eventually extended tosuitable situations around the world. At the end of his career with Citibank, hewas responsible for the bank's relationships with the oil and gas sector. Neither this announcement nor any copy of it may be taken or transmitted intothe United States of America or its territories or possessions (the "UnitedStates"), or distributed, directly or indirectly, in the United States ofAmerica, or its territories or possessions, or to any U.S. person as defined inRegulation S under the Securities Act 1933, as amended, including U.S. residentcorporations, or other entities organised under the laws of the United States orany state thereof or non-U.S. branches or agencies of such corporations orentities or into Australia, Japan, South Africa or the Republic of Ireland.Neither this document nor any copy of it may be taken or transmitted into ordistributed in Australia, Japan, South Africa or the Republic of Ireland, or anyother jurisdiction which prohibits the same except in compliance with applicablesecurities laws. Any failure to comply with this restriction may constitute aviolation of United States or other national securities laws. This announcement is not an offer of securities for sale in the United States.The securities described herein may not be offered or sold in the United Statesabsent registration or an exemption from registration. This announcement has been issued by Serica and is the sole responsibility ofSerica and has been approved solely for the purposes of Section 21 of theFinancial Services and Markets Act 2000 by JPMorgan Cazenove Limited of 20Moorgate, London EC2R 6DA. JPMorgan Cazenove Limited, which is regulated inthe United Kingdom by the Financial Services Authority, is acting for Serica andno-one else in connection with this matter and will not be responsible to anyother person for providing the protections afforded to clients of JPMorganCazenove Limited or for providing advice in relation to this matter. No shares of Serica have been marketed to, nor are available for purchase inwhole or in part by the public in the UK or elsewhere in connection with theproposed fundraising. The distribution of this announcement in certain jurisdictions may be restrictedby law, and persons into whose possession this announcement, or any documentreferred to herein, comes should inform themselves about, and observe, any suchrestrictions. Any failure to comply with these restrictions may constitute aviolation of the securities or other laws of any such jurisdiction. This announcement contains forward-looking information which is based onmanagement's current expectations and is subject to uncertainty and changes incircumstances. Actual results may vary materially from the expectationscontained in this announcement. Whilst the forward-looking information has beenprepared in good faith, by its very nature it relates to facts and circumstancesin the future and therefore it should not be relied upon. Serica is under noobligation to (and expressly disclaims any such obligation to) update or alterany forward-looking information whether as a result of new information, futureevents or otherwise. This announcement does not constitute or form part of any offer for sale orsubscription of or solicitation of any offer to buy or subscribe for anysecurities nor shall it or any part of it form the basis of or be relied on inconnection with or act as an inducement to enter into any contract or commitmentwhatsoever. No person is authorised by JPMorgan Cazenove Limited or any of itsaffiliates to give any information or to make any representation not containedin the final AIM admission document and any information or representation whichis not so contained must not be relied upon as having been authorised by or onbehalf of JPMorgan Cazenove Limited or any of its affiliates. The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this release. 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