Serica Energy Regulatory News (SQZ)

31 Dec 2007 07:00

Serica Energy plc31 December 2007 Serica Energy plc ("Serica" or the "Company") BILITON OPERATIONS UPDATE London, 31 December 2007 - Serica Energy plc (AIM & TSX-V: SQZ) announces thatthe GSF 136 drilling rig, on location in the Biliton Block in the Java Sea,Indonesia, has completed operations on the Batara Ismaya prospect, the firstprospect to be drilled in a planned two well programme in the Bilton PSC, and ispreparing to move to drill the second well of the programme on the separateBatara Indra prospect. The first well, Batara Ismaya #1, was drilled to a total depth of 3,392 feet andencountered a sequence of tertiary sandstones between 2,484 and 3,192 feet..The total net reservoir sand thickness in this interval was approximately 325feet, twice as much as predicted prior to drilling, and the average porosity wasapproximately 35%. Although these sands did not contain hydrocarbons, thisevidence of improved reservoir thickness may increase the potential of otherprospects in the Biliton Block. The lack of hydrocarbons at Batara Ismaya maybe due to failure of the anticipated stratigraphic trapping mechanism or to abarrier to the migration of hydrocarbons from the source rocks that lie to thewest of the well. The rig will shortly move approximately 24 kilometres to the south-east to drillthe second well in the programme, Batara Indra North #1, on a separate four-waydip closed structure located in an area in which seabed oil seeps were detectedin a survey carried out in 1999. Serica has a 45% interest in the Biliton PSC and is the operator. The majorityof the cost of these two wells is being carried by a farminee. Paul Ellis, Serica Chief Executive said: "Whilst the first well in the Bilitonprogramme has not encountered hydrocarbons, we are encouraged by the thicknessand quality of the reservoir sands discovered in the well. The Biliton Blockcovers a very large area with a number of significant and separate prospectsidentified on seismic and will require several wells to explore fully. Theevidence of seabed oil seeps at the next prospect to be drilled, Batara Indra,is an encouraging sign that hydrocarbons may have migrated into this area." 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 6673Alisdair Haythornthwaite alisdair.haythornthwaite@pelhampr.com +44 (0)20 7743 6676 CHF - CanadaSarah Gingerich sarah@chfir.com +1 416 868 1079 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 sarah@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