Serica Energy Regulatory News (SQZ)

18 Jul 2007 07:01

Serica Energy plc18 July 2007 FOR IMMEDIATE RELEASE SERICA ENERGY PLC OBTAINS COMMITMENT FOR US$100 MILLION SENIOR SECURED DEBT FACILITY London, 18th July 2007 - Serica Energy plc ("Serica" or the "Company") hasobtained a commitment from JPMorgan Chase Bank, N.A. and The Governor andCompany of the Bank of Scotland to enter into a US$100 million senior secureddebt facility. Closing of the facility is subject to legal documentation andfulfillment of standard terms and conditions for a debt financing of thisnature. The facility, which will have a term of 12 months, with the Company having anoption to extend for a further 6 months, will be used to fund appraisal anddevelopment expenditures for the Kambuna field in Indonesia and the Columbusfield in the UK North Sea as well as for Norwegian appraisal expenditure andgeneral corporate purposes. Serica's Chief Executive, Paul Ellis, said: "This facility provides Serica with the funds required to develop the Company'sinterests in the Kambuna and Columbus fields, both of which are operated bySerica, and to meet Serica's share of drilling costs for appraisal of the Breamoil discovery in the Norwegian North Sea, planned for early 2008. Development of the Kambuna field is now well underway with negotiations for thesale of the gas at an advanced stage. The field lies offshore North West Sumatraand is destined to supply gas to the city of Medan. The wellhead support toweris currently under construction in Balikpapan, Indonesia, and is scheduled fordelivery in September. In the fourth quarter of this year, the support towerwill be installed and three wells will be drilled to develop and furtherappraise the full extent of the Kambuna field. In the North Sea, plans for earlyappraisal and development of the Columbus field are significantly advanced andthe first Columbus field appraisal well is scheduled to commence drilling inlate August. The Company has been very successful in extending its acreage bank and isbuilding up its exploration drilling activity in the second half of the yearwith two exploration wells to be drilled in the Biliton block in Indonesia,offshore Java. Subject to the successful outcome of current farm-outnegotiations, further drilling is also planned for the UK North Sea. I believe that the Company's exploration prospects provide the potential to addmaterial value for shareholders and we continue to seek opportunities to bringour exploration plans forward at the same time as appraisal and developmentactivity in the Company is becoming more significant." Background Notes: Serica Energy plc is an international oil and gas exploration company withoperations in the UK, Norway, Spain, Ireland, Indonesia and Vietnam. It iscurrently developing a gas-condensate field in Indonesia (the Kambuna field),appraising a gas-condensate discovery in the UK North Sea (the Columbus field)and appraising an oil field in the Norwegian North Sea (the Bream field). The Company's ordinary shares are listed in London on AIM and on the CanadianTSX Venture Exchange under the symbol "SQZ". The 2006 Annual Report and Accountscan be obtained on Serica's web site at www.serica-energy.com and atwww.sedar.com - END - Enquiries: Serica Energy plc Paul Ellis, Chief Executive OfficerEmail: paul.ellis@serica-energy.comTel: +44 (0)20 7487 7300 Chris Hearne, Finance DirectorEmail: chearne@serica-energy.comTel: +44 (0)20 7487 7300 JPMorgan Cazenove Steve BaldwinEmail: steve.baldwin@jpmorgancazenove.comTel: +44 (0)20 7588 2828 Pelham Public Relations -UK James HendersonEmail: james.henderson@pelhampr.comTel: +44 (0)20 7743 6673 Alisdair HaythornthwaiteEmail: alisdair.haythornthwaite@pelhampr.comTel: +44 (0)20 7743 6676 CHF - Canada Kelly CodyEmail: kelly@chfir.comTel: +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