Award of Offshore Licences
Serica Energy plc
31 January 2007
For immediate release: Wednesday 31 January 2007
SERICA ENERGY ANNOUNCES ENTRY INTO NORWAY
WITH AWARD OF TWO NEW OFFSHORE LICENCES
AND NEAR TERM DEVELOPMENT POTENTIAL
London, January 31, 2007 - Serica Energy plc (AIM and TSX Venture: SQZ)
announces the award of its first two exploration licences in Norway.
Serica has been awarded a 20% interest in both of the two licences that it
applied for in Norway's 2006 Awards in Predefined Areas ('APA') Licence Round.
The two offshore licences are contiguous and lie in the Egersund Basin, about
120 kilometres southwest of Stavanger, Norway's fourth largest city and largest
port serving the oil industry.
The northern licence covers an area of approximately 725 square kilometres
comprising parts of the following licence blocks: 17/8, 17/9, 17/11, 17/12, 18/7
and 18/10. It includes the Bream oil discovery (1972) and the Brisling oil
discovery (1973).
The southern licence covers an area of approximately 900 square kilometres
comprising parts of the following blocks: 8/3, 9/1, 17/12, 18/10 and 18/11. It
includes the 18/10-1 oil discovery (1980).
The Bream discovery was one of the very first discoveries in the Norwegian
sector of the North Sea. The well was tested at rates of up to 1,000 barrels
per day of 30 degrees API oil. Due to the size of the field and the low
production rates achieved during the tests, it was regarded as uneconomic in the
1970s.
Following analysis of modern 3D seismic data that defines the field boundaries,
Serica estimates that the recoverable reserves of the Bream field lie within a
range of 40-100 million barrels. Using modern highly deviated or horizontal
completions should enable individual wells to produce at rates in excess of
6,000 barrels per day.
The oil rates achieved during the Brisling and 18/10-1 flow tests were
approximately 2,200 barrels per day and 1,800 barrels per day respectively, but
whilst the flow rates were higher the discoveries are smaller than Bream and
require further evaluation.
Paul Ellis (Chief Executive) said:
'This is the first time that this area of the Egersund Basin has been available
for licensing since the 1980s and we are very pleased to have been awarded these
two licences as our first entry into Norway. In particular, the Bream licence
was one of the most highly sought after licences in the 2006 APA Round, as it
contains an oil discovery that Serica believes to be potentially commercial. We
look forward to working with our new operators and partners to appraise the
Bream discovery and to carry out further exploration in the licence areas.'
Enquiries:
Serica Energy plc
Paul Ellis, pellis@serica-energy.com +44 (0)20 7487 7300
Chief Executive Officer
Chris Hearne, Finance Director chearne@serica-energy.com +44 (0)20 7487 7300
Pelham Public Relations -UK
James Henderson james.henderson@pelhampr.com +44 (0)20 7743 6673
Alisdair Haythornthwaite alisdair.haythornthwaite@pelhampr.com +44 (0)20 7743 6676
CHF Investor Relations - Canada
Jan Moir jan@chfir.com +1 416 868 1079
Heather Colpitts heather@chfir.com +1 416 868 1079
Background Notes
Serica Energy plc is an international oil and gas exploration company with
operations in Indonesia, the UK North Sea, Spain, Ireland and Vietnam. The
Company's ordinary shares are listed in London on AIM and on the Canadian TSX
Venture Exchange under the symbol 'SQZ'. The 2005 Annual Report and Accounts can
be obtained from the Company's web-site www.serica-energy.com and at
www.sedar.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 there from.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
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