Serica Energy Regulatory News (SQZ)

25 Sep 2007 07:03

Serica Energy plc25 September 2007 Serica Energy Plc ("Serica" or the "Company") SERICA ENERGY PROVIDES AN OPERATIONS UPDATE London, 25 September 2007 - Serica Energy plc (TSX Venture & AIM: SQZ) ispleased to provide an update on operational activity across its portfolio in itscore regions of Western Europe and South East Asia. Western Europe - Spudding of first Columbus appraisal well, UK North Sea- 2D seismic programme and farm-out onshore Spain UK North Sea The first appraisal well on the Columbus discovery on Block 23/16f spuddedyesterday, at a step out location three kilometres north of the initialdiscovery well. Well 23/16f-12, in which Serica has a 50% interest, is beingdrilled with the SEDCO 704 drilling rig. The purpose of the well is to confirmmost likely resource estimates, investigate further reserve upside and gathersufficient data to prepare a field development plan for submission in 2008. As announced by Serica on 20 December 2006, the Columbus discovery wellencountered a gross gas column of at least 125 feet in the Palaeocene Fortiessandstone. A total of 85 feet of the reservoir was tested and the stabilisedaverage production rates on a 56/64 inch choke during a five hour period were17.5 million cubic feet of gas per day and 1,060 barrels per day of 47.5 degreesAPI condensate. The most likely net contingent resources of oil equivalent lying in Block 23/16fattributable to Serica's 50% interest are 10.8 million barrels, according to anindependent report carried out by RPS Energy Limited on behalf of Sericafollowing the drilling of the discovery well. Serica's partners in Block 23/16fare Endeavour Energy UK Limited (25%) and EOG Resources United Kingdom Limited(25%). Spain Serica is currently carrying out a 330 kilometre 2D seismic survey on its fouronshore licences in Aragon Province, in the north-eastern part of the country.Serica has entered into a contract with Beach Petroleum Limited under whichSerica will farm out a 25% interest in the licences and will retain a 75%interest and operatorship. South East Asia - Rig contracted to drill two high impact exploration wells on Biliton PSC in Indonesia in Q4 2007- Installation of field wellhead support tower and drilling / completion of three development wells on Kambuna field to be completed in Q1 2008- 3D seismic survey completed in Block 06/94, offshore Vietnam Indonesia The Global Santa Fe GSF 136 drilling rig has been contracted for the drilling oftwo wildcat, high impact, exploration wells on the Biliton PSC, located offshorein a virtually unexplored basin in the central Java Sea, commencing in Q4 2007.The previously contracted rig was damaged during operations for another company,but Serica moved quickly to contract the GSF 136 in its place and minimise thedelay to its drilling programme. Serica will operate the wells and retains a 45%interest following a farmout to Nations Petroleum Company Ltd., which will bearthe majority of the costs of the drilling programme. In the Glagah-Kambuna PSC offshore North West Sumatra, the development programmefor the Kambuna gas/condensate field is well underway with first productionexpected at the end of 2008. The field wellhead support tower has been built andwill be installed Q4 2007, following which two development wells will be drilledfrom the tower and the Kambuna #2 well will be recompleted. In addition,offshore and onshore pipeline route surveys will be carried out in preparationfor the tender for pipeline supply and installation, whilst negotiations for thesale of the gas and condensate are expected to conclude shortly. Vietnam The acquisition of a 780 square kilometre 3D seismic survey has been completedin Block 06/94, Con Son Basin offshore Vietnam, in which Serica has a 33.3%interest. The block lies immediately south of the producing Lan Tay and Lan Dogas fields and immediately east of the Dua and Blackbird oil discoveries. Serica's Chief Executive, Paul Ellis, commented:"Serica is set for an extremely active period of exploration, appraisal anddevelopment drilling with operations on six wells in the UK North Sea andIndonesia over the next six months. In addition, seismic surveys are beingconducted in Spain and Vietnam, whilst preparations for 2008 drilling in Norwayand in the UK Southern Gas Basin are also underway. "We look forward to the results of the Columbus appraisal well, which is beingdrilled at a significant step out location from the original discovery well andwhich, if successful, will confirm the potential of the field and put Serica ina position to prepare a field development plan." Enquiries:Serica Energy plcPaul Ellis, paul.ellis@serica-energy.com +44 (0)20 7487 7300Chief Executive OfficerChris Hearne, chris.hearne@serica-energy.com +44 (0)20 7487 7300Finance Director JPMorgan CazenoveSteve Baldwin steve.baldwin@jpmorgancazenove.com +44 (0)20 7588 2828 Tristone Capital LimitedMajid Shafiq mshafiq@tristonecapital.com +44 (0)20 7355 5872 Pelham Public Relations-UKJames Henderson james.henderson@pelhampr.com +44 (0)20 7743 6673AlisdairHaythornthwaite alisdair.haythornthwaite@pelhampr.com +44 (0)20 7743 6676 CHF - CanadaKelly Cody kelly@chfir.com +1 416 868 1079 ----------------- Forward Looking Statements This disclosure contains certain forward looking statements that involvesubstantial known and unknown risks and uncertainties, some of which are beyondSerica Energy plc's control, including: the impact of general economicconditions where Serica Energy plc operates, industry conditions, changes inlaws and regulations including the adoption of new environmental laws andregulations and changes in how they are interpreted and enforced, increasedcompetition, the lack of availability of qualified personnel or management,fluctuations in foreign exchange or interest rates, stock market volatility andmarket valuations of companies with respect to announced transactions and thefinal valuations thereof, and obtaining required approvals of regulatoryauthorities. Serica Energy plc's actual results, performance or achievementcould differ materially from those expressed in, or implied by, these forwardlooking statements and, accordingly, no assurances can be given that any of theevents anticipated by the forward looking statements will transpire or occur, orif any of them do so, what benefits, including the amount of proceeds, thatSerica Energy plc will derive therefrom. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. To receive Company news releases via email, please contact kelly@chfir.com and specify "Serica press releases" in the subject line. This information is provided by RNS The company news service from the London Stock Exchange