LONDON, Jan. 31 /CNW/ - Serica Energy plc (AIM and TSX Venture: SQZ)
announces the award of its first two exploration licences in Norway.
Serica has been awarded a 20% interest in both of the two licences that
it applied for in Norway's 2006 Awards in Predefined Areas ("APA") Licence
Round. The two offshore licences are contiguous and lie in the Egersund Basin,
about 120 kilometres southwest of Stavanger, Norway's fourth largest city and
largest port serving the oil industry.
The northern licence covers an area of approximately 725 square
kilometres comprising parts of the following licence blocks: 17/8, 17/9,
17/11, 17/12, 18/7 and 18/10. It includes the Bream oil discovery (1972) and
the Brisling oil discovery (1973).
The southern licence covers an area of approximately 900 square
kilometres comprising parts of the following blocks: 8/3, 9/1, 17/12, 18/10
and 18/11. It includes the 18/10-1 oil discovery (1980).
The Bream discovery was one of the very first discoveries in the
Norwegian sector of the North Sea. The well was tested at rates of up to
1,000 barrels per day of 30 degrees API oil. Due to the size of the field and
the low production rates achieved during the tests, it was regarded as
uneconomic in the 1970s.
Following analysis of modern 3D seismic data that defines the field
boundaries, Serica estimates that the recoverable reserves of the Bream field
lie within a range of 40-100 million barrels. Using modern highly deviated or
horizontal completions should enable individual wells to produce at rates in
excess of 6,000 barrels per day.
The oil rates achieved during the Brisling and 18/10-1 flow tests were
approximately 2,200 barrels per day and 1,800 barrels per day respectively,
but whilst the flow rates were higher the discoveries are smaller than Bream
and require further evaluation.
Paul Ellis (Chief Executive) said "This is the first time that this area
of the Egersund Basin has been available for licensing since the 1980s and we
are very pleased to have been awarded these two licences as our first entry
into Norway. In particular, the Bream licence was one of the most highly
sought after licences in the 2006 APA Round, as it contains an oil discovery
that Serica believes to be potentially commercial. We look forward to working
with our new operators and partners to appraise the Bream discovery and to
carry out further exploration in the licence areas."
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 can be obtained from the Company's web-site www.serica-energy.com and
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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