Thursday 25 June 2009

Serica wins UK North Sea exploration and production licence

Serica Energy PLC (AIM, TSX-V: SQX) said it has been awarded an exploration and production licence over Block 22/19c in the UK 25th round of offshore licensing. Serica is the licence operator and holds a 100 percent working interest.

The block lies in the UK Central North Sea and is located approximately 20 kilometres to the west of Serica's Columbus field, currently under development.

The licence covers approximately 150 square kilometres and contains two Palaeocene Forties sand prospects known as Oates and Bowers.

The Oates prospect is considered low risk exhibits 3D seismic data characteristics similar to those seen in the Columbus field, in which three successful wells have been drilled by the company. The Oates prospect has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found.

During the initial licence term of four years, Serica must drill a well to test the Palaeocene target and at the end of the initial term 50 percent of the licence area must be relinquished.

Serica CEO Paul Ellis said: “We are delighted to have been awarded Block 22/19c as it was the highest ranked block in our 25th round applications. Success with the Oates prospect could also enhance the economics of the Columbus development, through the shared use of facilities such as pipelines and risers. We look forward to an early start to our drilling programme, so that potential development synergies may be realised.”

www.proactiveinvestors.co.uk

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