Last checked at 30 Jun 2011 18:05
Serica Energy plc
("Serica" or the "Company")
Licence Acquisition
London, 30 June 2011 - Serica Energy plc (AIM & TSX: SQZ) reports a Licence Acquisition.
Serica has a 30% interest in Block 15/21g (P1655) and today EnCore Oil plc as operator made the following announcement regarding the adjoining Block 15/21a (P218):
"Block 15/21a (P218)
EnCore Oil plc (LSE: EO.) and its P1655 (Block 15/21g) partners, Nautical Petroleum plc and Serica Energy plc (the P1655 group), announce they have agreed terms to acquire a 70 per cent. interest in a part of adjoining Licence P218 (Block 15/21a). P218 is currently operated by DEO Petroleum with co-venturers, Faroe Petroleum plc, Maersk Oil UK Ltd and Atlantic Petroleum (the P218 group). The area in P218 to be acquired includes the 15/21a-38z Spaniards/Gamma discovery well, drilled in 1989 by Amerada Hess, which flowed 2,600 bbls/day of 26 API oil on test. In consideration, the P1655 group have agreed to assign the P218 group a 30 per cent. interest in P1655, and have agreed to fund the cost of the first well to appraise the Spaniards/Gamma discovery. It has also been agreed that a subsequent appraisal well, if deemed necessary and approved by the partnership, would be funded on promoted terms by the current P218 partners as shown in the table below, after which funding for any further wells would be by equity share.
Subject to DECC approval, it is expected that part of the P218 licence will be amalgamated into P1655 and it is anticipated that the initial equities and funding obligations in the newly enlarged P1655 licence will be as follows:
Company | Current P1655 Equity % | Enlarged P1655 Equity % | First Spaniards Appraisal Well Funding % | Second Spaniards Appraisal Well Funding % |
EnCore Oil plc* | 40.00 | 28.00 | 40.00 | 22.86 |
Nautical Petroleum | 30.00 | 21.00 | 30.00 | 17.14 |
Serica Energy | 30.00 | 21.00 | 30.00 | 17.14 |
Current P218 Equity % | ||||
DEO Petroleum | 42.08 | 12.62 | nil | 18.03 |
Faroe Petroleum | 28.00 | 8.40 | nil | 12.00 |
Maersk Oil UK | 19.12 | 5.74 | nil | 8.19 |
Atlantic Petroleum | 10.80 | 3.24 | nil | 4.63 |
* Operator
The first well, is expected to commence drilling in Q2 2012, subject to suitable rig availability and receipt of the necessary permitting and site survey approvals."
30 June 2011
Enquiries:
Serica Energy plc | ||
Tony Craven Walker, Chairman | tony.cravenwalker@serica-energy.com | +44 (0)20 7487 7300 |
Chris Hearne, CFO | chris.hearne@serica-energy.com | +44 (0)20 7487 7300 |
J.P.Morgan Cazenove | ||
Patrick Magee | patrick.magee@jpmorgancazenove.com | +44 (0)20 7588 2828 |
RBC Capital Markets | ||
Josh Critchley | joshua.critchley@rbccm.com | +44 (0)20 7002 2435 |
Matthew Coakes | matthew.coakes@rbccm.com | +44 (0)20 7653 4871 |
College Hill | ||
Nick Elwes | nick.elwes@collegehill.com | +44 (0)20 7457 2020 |
Simon Whitehead | simon.whitehead@collegehill.com | +44 (0)20 7457 2020 |
To receive Company news releases via email, please contact nick.elwes@collegehill.com and specify "Serica press releases" in the subject line.
The technical information contained in the announcement has been reviewed and approved by Peter Sadler, Chief Operating Officer of Serica Energy plc. Peter Sadler is a qualified Petroleum Engineer (MSc Imperial College, London, 1982) and has been a member of the Society of Petroleum Engineers since 1981.
Notes to Editors
Serica Energy plc is an oil and gas exploration and production company based in London, England, and holds exploration and production licences offshore UK, Spain, Indonesia and in the Atlantic Margin basins of Ireland and Morocco. The Company's key producing and development assets are a 25% interest in the producing Kambuna field offshore Indonesia and a 50% stake in the UK Central North Sea Columbus field. Serica's gross oil and gas production amounts to approximately 2,800 barrels of oil equivalent per day.
The Company is listed on the London AIM market and the Toronto TSX market under the symbol "SQZ".
www.serica-energy.com
Forward Looking Statements
This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond Serica Energy plc's control, including: the impact of general economic conditions where Serica Energy plc operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Serica Energy plc's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Serica Energy plc will derive therefrom.