Successful Appraisal Wells
Serica Energy plc
06 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 to
announce the results of both the Columbus appraisal well 23/16f-12 and the
sidetrack well 23/16f-12z in the UK Central North Sea. Both wells are successful
appraisals of the Columbus field discovery well 23/16f-11, drilled by Serica and
its co-venturers in December 2006.
Well 23/16f-12 was drilled as a vertical well approximately three kilometres
north of the Columbus discovery well and encountered gas/condensate-bearing
Paleocene sands at a higher elevation than those tested in well 23/16f-11. A
full evaluation of the hydrocarbon-bearing interval was carried out and
reservoir fluid samples were obtained for further analysis. Reservoir pressure
measurements indicate that this reservoir is separate to that discovered in well
23/16f-11 and the full extent of this new accumulation is not yet known. The net
pay sand in this new reservoir is approximately 40 vertical feet.
To further evaluate the Columbus discovery, the 23/16f-12 well was then
sidetracked to a bottom-hole location approximately 2.2 kilometres north of the
Columbus discovery well and encountered gas/condensate-bearing Paleocene sands
similar to those found in 23/16f-11. Evaluation of down-hole pressure data
indicates that the sands encountered in the sidetrack are in pressure
communication with those in the discovery well. The net pay sand in the
sidetrack well is approximately 70 vertical feet, compared with 56 vertical feet
in 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 the
Columbus field.
The successful outcome of the two new wells supports the commercial development
of Columbus and data from these wells will be used to advance field development
studies. In conjunction with BP, the operator of the adjacent Lomond field,
Serica has recently commissioned an engineering study into the production of
Columbus via a subsea tieback to Lomond and this study has concluded that export
via this route is a practical option. Serica also continues to study alternative
export 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 Kingdom
Limited (25%).
Paul Ellis, Chief Executive of Serica said that 'These two successful appraisal
wells confirm that the Columbus field has significant development potential. The
fact that hydrocarbons have been found over three kilometres from the discovery
well has opened up a second reservoir target in the field, the extent of which
is as yet unknown. The sidetrack has found a thicker and potentially more
productive Columbus reservoir than that encountered in the discovery well, which
is very encouraging for the prospects of development of Columbus and for further
exploration in the area.'
Further Well Details
Well 23/16f-12 reached its final depth of 10,502 feet on 20 October after 26
days drilling. A core sample 240 feet long was taken throughout the Paleocene
reservoir interval. The well encountered gas/condensate-bearing sands with a
gross gas column of approximately 60 feet. The sands were encountered at a depth
of 9,665 feet subsea, approximately 70 feet higher than at the Columbus
discovery well 23/16f-11. After wireline logging and sampling had been
completed, 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 28
October and reached its final depth of 11,880 feet on 2 November after 5 days
drilling. The sidetrack was deviated to a location at top reservoir level
approximately 2.2 kilometres north of the discovery well 23/16f-11. The
sidetrack encountered the top of the gas/condensate-bearing Paleocene sands at a
depth of 9,802 feet subsea, approximately 70 feet lower than at the discovery
well. Hydrocarbons were seen down to 9,893 feet subsea, some 32 feet lower than
seen 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 development
purposes was obtained from drilling, coring, well logging and fluid sampling.
Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who has over 35
years' experience in the upstream oil and gas industry, has reviewed and
approved the technical information contained in this announcement.
Enquiries:
Serica Energy plc
Paul Ellis, paul.ellis@serica-energy.com +44 (0)20 7487
7300
Chief Executive Officer
Chris Hearne, chris.hearne@serica-energy.com +44 (0)20 7487
7300
Finance Director
JPMorgan Cazenove
Steve Baldwin steve.baldwin@jpmorgancazenove.com +44 (0)20 7588
------------------------------------ 2828
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Tristone Capital Limited
Majid Shafiq mshafiq@tristonecapital.com +44 (0)20 7355
5872
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 - Canada
Kelly Cody kelly@chfir.com +1 416 868 1079
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