Serica Energy provides an operations update



    LONDON, Sept. 25 /CNW/ - Serica Energy plc (TSX Venture & AIM: SQZ) is
pleased to provide an update on operational activity across its portfolio in
its core regions of Western Europe and South East Asia.

    Western Europe

    
      -  Spudding of first Columbus appraisal well, UK North Sea
      -  2D seismic programme and farm-out onshore Spain
    

    UK North Sea
    ------------
    The first appraisal well on the Columbus discovery on Block 23/16f
spudded yesterday, at a step out location three kilometres north of the
initial discovery well. Well 23/16f-12, in which Serica has a 50% interest, is
being drilled with the SEDCO 704 drilling rig. The purpose of the well is to
confirm most likely resource estimates, investigate further reserve upside and
gather sufficient data to prepare a field development plan for submission in
2008.
    As announced by Serica on 20 December 2006, the Columbus discovery well
encountered a gross gas column of at least 125 feet in the Palaeocene Forties
sandstone. 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 period were
17.5 million cubic feet of gas per day and 1,060 barrels per day of
47.5 degrees API condensate.
    The most likely net contingent resources of oil equivalent lying in Block
23/16f attributable to Serica's 50% interest are 10.8 million barrels,
according to an independent report carried out by RPS Energy Limited on behalf
of Serica following the drilling of the discovery well. Serica's partners in
Block 23/16f are Endeavour Energy UK Limited (25%) and EOG Resources United
Kingdom Limited (25%).

    Spain
    -----
    Serica is currently carrying out a 330 kilometre 2D seismic survey on its
four onshore licences in Aragon Province, in the north-eastern part of the
country. Serica has entered into a contract with Beach Petroleum Limited under
which Serica will farm out a 25% interest in the licences and will retain a
75% interest and operatorship.

    South East Asia

    
      -  Rig contracted to drill two high impact exploration wells on Biliton
         PSC in Indonesia in Q4 2007
      -  Installation of field wellhead support tower and drilling/completion
         of three development wells on Kambuna field to be completed in Q1
         2008
      -  3D seismic survey completed in Block 06/94, offshore Vietnam
    

    Indonesia
    ---------
    The Global Santa Fe GSF 136 drilling rig has been contracted for the
drilling of two wildcat, high impact, exploration wells on the Biliton PSC,
located offshore in a virtually unexplored basin in the central Java Sea,
commencing in Q4 2007. The previously contracted rig was damaged during
operations for another company, but Serica moved quickly to contract the GSF
136 in its place and minimise the delay to its drilling programme. Serica will
operate the wells and retains a 45% interest following a farmout to Nations
Petroleum Company Ltd., which will bear the majority of the costs of the
drilling programme.
    In the Glagah-Kambuna PSC offshore North West Sumatra, the development
programme for the Kambuna gas/condensate field is well underway with first
production expected at the end of 2008. The field wellhead support tower has
been built and will be installed Q4 2007, following which two development
wells will be drilled from the tower and the Kambuna No. 2 well will be
recompleted. In addition, offshore and onshore pipeline route surveys will be
carried out in preparation for the tender for pipeline supply and
installation, whilst negotiations for the sale of the gas and condensate are
expected to conclude shortly.

    Vietnam
    -------
    The acquisition of a 780 square kilometre 3D seismic survey has been
completed in Block 06/94, Con Son Basin offshore Vietnam, in which Serica has
a 33.3% interest. The block lies immediately south of the producing Lan Tay
and Lan Do gas fields and immediately east of the Dua and Blackbird oil
discoveries.

    Serica's Chief Executive, Paul Ellis, commented:

    "Serica is set for an extremely active period of exploration, appraisal
and development drilling with operations on six wells in the UK North Sea and
Indonesia over the next six months. In addition, seismic surveys are being
conducted in Spain and Vietnam, whilst preparations for 2008 drilling in
Norway and in the UK Southern Gas Basin are also underway.
    "We look forward to the results of the Columbus appraisal well, which is
being drilled at a significant step out location from the original discovery
well and which, if successful, will confirm the potential of the field and put
Serica in a position to prepare a field development plan."

    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 therefrom.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    To receive Company news releases via email, please contact kelly@
    chfir.com and specify "Serica press releases" in the subject line.

    %SEDAR: 00022686E




For further information:

For further information: Enquiries: Serica Energy plc: Paul Ellis, Chief
Executive Officer, paul.ellis@serica-energy.com, +44 (0)20 7487 7300; Chris
Hearne, Finance Director, chris.hearne@serica-energy.com, +44 (0)20 7487 7300;
JPMorgan Cazenove: Steve Baldwin, steve.baldwin@jpmorgancazenove.com, +44
(0)20 7588 2828; 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, (416) 868-1079

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