LONDON, June 30 /CNW/ - Serica Energy plc (AIM & TSX-V: SQZ) ("Serica" or
"the Company") has reached agreement with Spring Energy Norway AS ("Spring")
for the sale of Serica's Norwegian subsidiary, Serica Energy Norge AS, which
holds all of Serica's interests in Norway, comprising a 20% working interest
in Norwegian offshore licences PL406 and PL407. Completion is subject to the
receipt of the required Norwegian government approvals to the transaction and
to other approvals and consents.
The consideration provides for payment in respect of past costs relating
to the blocks and includes a contingent payment to reflect the value of the
Bream Field, should appraisal of that field prove successful and the field is
brought onto production.
Serica Chief Executive, Paul Ellis, said:
"Norway is not core to the Company's portfolio. Set against slower than
anticipated progress with the field appraisal programme and the substantial
cost of drilling and development in Norway, disposal of our Norwegian assets
to Spring Energy enables us to release Serica's resources for more immediate
projects where we see a higher potential for near term, greater return. Under
the terms of the transaction Serica retains a significant part of the upside
value of the Bream field without being exposed to further appraisal and
development costs or the commitment of additional resources."
"Serica's strategy is to unlock the considerable value which lies in the
Company's core areas and to focus our resources on realising that value for
shareholders. Expanding our position in the UK North Sea, Ireland and
Indonesia and demonstrating the value of our assets in those areas is a key
part of that strategy. The disposal of our licences in Norway, whilst still
retaining an interest in their success, will help us to achieve these
"Our immediate aim is to build on our position in Indonesia, where the
Kambuna field is scheduled to start production at the end of this year, and to
accelerate development plans for our North Sea Columbus field. With the
prevailing high gas prices, significant associated liquids and demonstrated
high productivity, both fields offer material unrealised value."
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