Serica Energy Regulatory News (SQZ)

6 Nov 2007 14:00

Serica Energy plc06 November 2007 Serica Energy plc ("Serica" or the "Company") TWO SUCCESSFUL APPRAISAL WELLS DRILLED IN COLUMBUS FIELD London, 6 November 2007 - Serica Energy plc (AIM & TSX-V: SQZ) is pleased toannounce the results of both the Columbus appraisal well 23/16f-12 and thesidetrack well 23/16f-12z in the UK Central North Sea. Both wells are successfulappraisals of the Columbus field discovery well 23/16f-11, drilled by Serica andits co-venturers in December 2006. Well 23/16f-12 was drilled as a vertical well approximately three kilometresnorth of the Columbus discovery well and encountered gas/condensate-bearingPaleocene sands at a higher elevation than those tested in well 23/16f-11. Afull evaluation of the hydrocarbon-bearing interval was carried out andreservoir fluid samples were obtained for further analysis. Reservoir pressuremeasurements indicate that this reservoir is separate to that discovered in well23/16f-11 and the full extent of this new accumulation is not yet known. The netpay sand in this new reservoir is approximately 40 vertical feet. To further evaluate the Columbus discovery, the 23/16f-12 well was thensidetracked to a bottom-hole location approximately 2.2 kilometres north of theColumbus discovery well and encountered gas/condensate-bearing Paleocene sandssimilar to those found in 23/16f-11. Evaluation of down-hole pressure dataindicates that the sands encountered in the sidetrack are in pressurecommunication with those in the discovery well. The net pay sand in thesidetrack well is approximately 70 vertical feet, compared with 56 vertical feetin 23/16f-11. Reservoir fluid samples were obtained and the sidetrack well 23/16f-12z will now be suspended for potential use in the development of theColumbus field. The successful outcome of the two new wells supports the commercial developmentof Columbus and data from these wells will be used to advance field developmentstudies. In conjunction with BP, the operator of the adjacent Lomond field,Serica has recently commissioned an engineering study into the production ofColumbus via a subsea tieback to Lomond and this study has concluded that exportvia this route is a practical option. Serica also continues to study alternativeexport routes for early development of the field. The interests held in Block 23/16f are Serica Energy (UK) Limited 50%(operator), Endeavour Energy UK Limited (25%) and EOG Resources United KingdomLimited (25%). Paul Ellis, Chief Executive of Serica said that "These two successful appraisalwells confirm that the Columbus field has significant development potential. Thefact that hydrocarbons have been found over three kilometres from the discoverywell has opened up a second reservoir target in the field, the extent of whichis as yet unknown. The sidetrack has found a thicker and potentially moreproductive Columbus reservoir than that encountered in the discovery well, whichis very encouraging for the prospects of development of Columbus and for furtherexploration in the area." Further Well Details Well 23/16f-12 reached its final depth of 10,502 feet on 20 October after 26days drilling. A core sample 240 feet long was taken throughout the Paleocenereservoir interval. The well encountered gas/condensate-bearing sands with agross gas column of approximately 60 feet. The sands were encountered at a depthof 9,665 feet subsea, approximately 70 feet higher than at the Columbusdiscovery well 23/16f-11. After wireline logging and sampling had beencompleted, the well was plugged back in order to drill a sidetrack. Sidetrack well 23/16f-12z was kicked off from a depth of 4,816 feet on 28October and reached its final depth of 11,880 feet on 2 November after 5 daysdrilling. The sidetrack was deviated to a location at top reservoir levelapproximately 2.2 kilometres north of the discovery well 23/16f-11. Thesidetrack encountered the top of the gas/condensate-bearing Paleocene sands at adepth of 9,802 feet subsea, approximately 70 feet lower than at the discoverywell. Hydrocarbons were seen down to 9,893 feet subsea, some 32 feet lower thanseen at 23/16f-11. The well will be plugged back and the upper section of 23/16f-12z suspended for potential use in the Columbus development. Neither well was flow tested as sufficient information for field developmentpurposes was obtained from drilling, coring, well logging and fluid sampling. Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who has over 35years' experience in the upstream oil and gas industry, has reviewed andapproved the technical information contained in this announcement. 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 ----------------- The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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