Centrica farm-in and AGM Statement
Serica Energy plc
("Serica" or the "Company")
Centrica to farm-in to Serica's blocks 113/26b and 27c, UK East Irish Sea
AGM Statement and Company Presentation
London, 27 June 2013 - Serica Energy plc (AIM & TSX: SQZ) announces that it has reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited ("HRL") for the farm-out of UK East Irish Sea Blocks 113/26b and 27c (Licence P.1482), in which Serica presently holds a 65% interest.
Under the agreement, HRL will acquire an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica's share of costs associated with the drilling of an exploration well up to a cap of $17 million.
A gas prospect lying in the north of Block 113/27c, the Doyle prospect has been fully matured as the result of work performed in 2011 and is ready to drill. The site survey for this prospect has recently been completed at no cost to Serica. As plans for the well are ready for early drilling, a fast track timeframe announcement for this is also expected shortly.
The agreement is subject to UK government approval. Completion also requires agreement with the operator of a wind farm planned nearby. However this is now at an advanced stage with final agreement expected shortly.
Serica also announces that a statement to be made by Tony Craven Walker, Chairman and Interim CEO, at today's AGM which is due to commence at 10am (British Summer Time) at The Registry, Royal Mint Court, London, EC3N 4QN, United Kingdom is available to view at www.serica-energy.com together with a copy of the company presentation also given at the AGM.
Tony Craven Walker, Serica's Chairman and Interim Chief Executive said:
"We are very pleased to welcome Centrica as a new partner in this licence. We are delighted that Centrica's local experience can be utilised to drill an exploration well on the Doyle prospect. Doyle is now drill ready following the completion of a recent site survey which was performed at no cost to Serica. I look forward to an early announcement of drilling. This represents the latest in a number of farm-out agreements with high quality and well respected partners further demonstrating our strategy of offering our shareholders exposure to major drilling programmes at minimum cost and risk."
Enquiries:
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Serica Energy plc |
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Tony Craven Walker, Chairman & Interim CEO |
+44 (0)20 7487 7300 |
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Mitch Flegg, COO |
+44 (0)20 7487 7300 |
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Chris Hearne, CFO |
+44 (0)20 7487 7300 |
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J.P.Morgan Cazenove |
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Michael Wentworth-Stanley |
+44 (0)20 7588 2828 |
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RBC Capital Markets |
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Matthew Coakes |
+44 (0)20 7653 4000 |
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Peel Hunt |
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Richard Crichton |
+44 (0)20 7418 8900 |
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College Hill |
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David Simonson |
+44 (0)20 7457 2020 |
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Catherine Wickman |
+44 (0)20 7457 2020 |
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Alexandra Roper |
+44 (0)20 7457 2020 |
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The technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Operating Officer of Serica Energy plc. Mitch Flegg (BSc in Physics from Birmingham University) has 31 years of experience in oil & gas exploration and development and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
NOTES TO EDITORS
Serica Energy was formed in 2004 and, since then, has drilled 20 wells in locations as diverse as the UK Offshore, the Atlantic margin offshore Ireland, offshore Indonesia (North West Sumatra, East Kalimantan and Java) and offshore Vietnam. Seventeen of these wells were drilled by the Company as Operator, fourteen of the wells encountered oil or gas and six of these were commercial. The first of the commercial discoveries, the Kambuna field in North West Sumatra, was developed by the Company. The second, the Columbus field in the UK North Sea, is now in the pre-development stage with final project sanction pending. The Company also has a residual economic interest in the Bream oil field offshore Norway, which will be crystallised when the field is developed, and licence interests offshore Ireland, Morocco and Namibia. Further information on the Company can be found at www.serica-energy.com.
The Company is listed on both the Toronto Stock Exchange and the London AIM under the ticker SQZ.
To receive Company news releases via email, please contact serica@collegehill.com and specify "Serica press releases" in the subject line.
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: geological, geophysical and technical risk, 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 therefrom.
This information is provided by RNS
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