Successful Well Test
Serica Energy plc
20 December 2006
For immediate release: Wednesday, December 20, 2006
SERICA ENERGY SUCCESSFULLY TESTS GAS AND CONDENSATE
IN THE NORTH SEA COLUMBUS WELL
•Gross gas column of at least 125 feet encountered on the Columbus
prospect
•Well tested at 17.5 million cubic feet of gas per day and 1,060 barrels
per day of condensate
•Partners commencing discussions on appraisal and development programme
for the discovery
London, December 20, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ) is
pleased to announce that it has successfully completed testing the Columbus well
23/16f-11 and confirmed the presence of a potentially commercial gas and
condensate reservoir. The well will now be suspended for possible future use in
a development programme.
Well 23/16f-11, a near-vertical exploration well drilled on the Columbus
prospect in the UK Central North Sea, encountered a gross gas column of at least
125 feet in the Paleocene Forties sands. A total of 85 feet of the reservoir was
tested and the stabilised average production rates on a 56/64 inch choke during
a five hour flow period were 17.5 million cubic feet of gas per day and 1,060
barrels per day of 47.5 degrees API condensate. The wellhead flowing pressure
was 1,200 pounds per square inch and the inert gas content was less than 2%.
Serica will now commence discussions with its partners to determine the
appraisal drilling programme for the Columbus discovery and the full extent of
the reserves and expects that further drilling could take place in 2007 in order
to bring the discovery into production as rapidly as possible. The asset lies in
close proximity to existing production infrastructure, providing the possibility
to tie-in the discovery.
Subject to regulatory and partner approvals, the interests held in Block 23/16f,
in which the Columbus well has been drilled, are Serica 25% (Operator), BG
International Limited (25%), Endeavour Energy UK Limited (25%) and EOG Resources
United Kingdom Limited (25%). Under a transaction recently announced and subject
to regulatory and partner approval Serica also has a 25% interest in the
post-Cretaceous section of part of the adjacent Block 23/21 into which the
Columbus structure is believed to extend.
Paul Ellis, Chief Executive of Serica said that 'It is an excellent result for
the Company to have produced gas at commercial flow rates in the Columbus well,
particularly given the fact that the Company has gone from the award of the
licence to completing flow testing in less than one year. The successful result
of Columbus gives Serica a potential North Sea development project to add to our
existing Kambuna gas field development in Indonesia.
We have drilled four wells in the last sixteen months and have found gas in each
of them, two of which, Kambuna and Columbus are now scheduled for development
and appraisal respectively. Next year we expect to be drilling at least six
wells in Indonesia and one or more appraisal wells in the North Sea and we look
forward to further success.'
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 are
available at www.serica-energy.com and www.sedar.com.
Enquiries:
Serica Energy plc
Paul Ellis, pellis@serica-energy.com +44 (0)20 7487 7300
Chief Executive Officer
Chris Hearne, chearne@serica-energy.com +44 (0)20 7487 7300
Finance Director
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
--------------- x237
Heather Colpitts heather@chfir.com +1 416 868 1079
------------------- x223
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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