Last checked at 15 Jun 2010 07:00
Serica Energy plc
("Serica" or the "Company")
SERICA ANNOUNCES OPERATIONAL UPDATE ON COLUMBUS
Serica announces that agreement has been reached with BG International Limited ("BG"), as operator of the Lomond field, and Dana Petroleum Limited, as operator of the Arran field (formerly the Barbara and Phyllis fields), whereby BG will carry out Front End Engineering and Design work ("FEED") for a Bridge Linked Platform ("BLP") that will connect with the Lomond platform and provide gas and condensate reception facilities for Columbus and Arran production.
The Columbus field, discovered in 2006 in Block 23/16f in the UK Central North Sea, has now been shown to extend into the adjacent Block 23/21. The licence holders of both blocks will share the costs of the Columbus portion of FEED for the BLP and, under a separate agreement, have agreed to share the costs of the Columbus subsea facilities and to submit a new Columbus Field Development Plan ("FDP") to the UK Department of Energy and Climate Change.
Serica has been appointed the Operator by the Columbus Owners (as defined below) to manage the development process to the point of project sanction on their behalf.
FEED is already underway and it is expected that all FEED work will be completed in the third quarter of 2010 concurrent with FDP preparation and submission. Terms for the use of Lomond as processing host and export point for the Columbus produced fluids have reached an advanced stage of negotiation. Project sanction is programmed for the end of 2010.
The Columbus Owners are:
In Block 23/16f: Serica Energy (UK) Limited (50%), Endeavour Energy UK Limited (25%) and EOG Resources United Kingdom Limited (25%).
In Block 23/21: BG International Limited (83.333%) and Hess Limited (16.667%).
Serica CEO Paul Ellis said:
"We are pleased to have reached this significant milestone in the Columbus project. There are many stakeholders in the project and I am encouraged to see the level of cooperation that has been achieved and am now confident that we can contribute to the development of the UK's resource base and create value for all parties, with production from Columbus planned in early 2013."
15 June 2010
Enquiries:
| Serica Energy plc |
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| Paul Ellis, CEO | paul.ellis@serica-energy.com | +44 (0)20 7487 7300 |
| Chris Hearne, CFO | chris.hearne@serica-energy.com | +44 (0)20 7487 7300 |
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| J.P.Morgan Cazenove |
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| Patrick Magee | patrick.magee@jpmorgancazenove.com | +44 (0)20 7588 2828 |
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| RBC Capital Markets |
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| Josh Critchley | joshua.critchley@rbccm.com | +44 (0)20 7002 2435 |
| Matthew Coakes | matthew.coakes@rbccm.com | +44 (0)20 7653 4871 |
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| College Hill |
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| Nick Elwes | nick.elwes@collegehill.com | +44 (0)20 7457 2020 |
| Simon Whitehead | simon.whitehead@collegehill.com | +44 (0)20 7457 2020 |
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 using specialised geophysical technology to create value through the discovery of new hydrocarbon reserves. Serica is based in London, England, and holds exploration and production licences principally in the UK North Sea and East Irish Sea, the Atlantic Margins of Ireland and Morocco and in Indonesia. 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, under development.
Serica's business objective centres on building shareholder value through successful exploration and appraisal drilling. Serica is also focused on improving its market liquidity, optimising its risk profile and managing the company's portfolio of opportunities through acquisition and divestment. Serica's strategy involves minimising its exploration drilling costs through promoted farm-outs while retaining high working interests in the potential for exploration success.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To receive Company news releases via email, please contact nick.elwes@collegehill.com and specify "Serica press releases" in the subject line.