LONDON, Sept. 3 /CNW/ - Serica Energy plc (AIM & TSX-V: SQZ) ("Serica" or
"the Company") provides further information regarding Serica's Petroleum
Exploration Licence PEL 01/06 covering three blocks in the southern Slyne
Basin off the west coast of Ireland (the "Licence").
This information in respect of the Licence and the Bandon and Boyne
prospects is supplemental to that provided in Serica's news release of 2
September 2008 and is provided in conformance with Canadian listing rules.
The area covered by the Licence is approximately 151,000 acres. Serica's
current net interest in the Licence is 100% and, following completion of the
previously announced farm-out to RWE-Dea, Serica will have a net interest of
The Licence is classed as a Frontier Licence and was granted on 16
December 2006 for an initial period of three years and may be extended up to
at least fifteen years subject to a work programme and to certain area
relinquishment requirements to be agreed with the Irish government. Following
a commercial discovery a Petroleum Exploration Licence may be converted to a
Petroleum Lease for a period of years sufficient to develop and produce
petroleum for the commercial life of the deposit.
The principal reservoir target is the Triassic age Sherwood sandstone,
which is expected to be gas-prone and which lies approximately
2,000-3,000 metres below sea level. Water depth in the Licence is
approximately 200-300 metres. The planned well to test the Sherwood reservoir
at the Bandon or Boyne prospect is estimated to cost US$30 million including
mobilisation of the drilling rig and equipment from the UK North Sea. Drilling
is planned to take place in the second quarter of 2009.
The nearest commercial development of a Sherwood sandstone reservoir is
at the Corrib field which lies approximately 42 kilometres to the north of the
The estimated range of prospective resources is from 230 billion cubic
feet to 1.7 trillion cubic feet for the Bandon prospect and 300 billion cubic
feet to 2.1 trillion cubic feet for the Boyne prospect. If the exploration is
successful, the gas would probably be transported to the mainland for sale
into the Irish gas market at the then prevailing term or spot gas prices. The
probability of technical success for each prospect has been estimated at
approximately 30%. These estimates of prospective resources and probabilities
of success have been made by Serica's in-house technical team. The prospective
resources are those quantities of oil and gas presently estimated to be
potentially recoverable from these undiscovered accumulations. If discovered,
they would be technically and economically viable to recover. However, there
is no certainty that these prospective resources will be discovered.
Serica is the operator of the Licence and is also the operator of the
Kambuna gas field under development offshore Sumatra and the Columbus gas
field offshore UK. Serica operates other exploration ventures in the UK, Spain
Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who has
over 35 years' experience in the upstream oil and gas industry, has reviewed
and approved the technical information contained in this announcement.
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
email@example.com and specify "Serica press releases" in the subject line.
For further information:
For further information: Enquiries: Serica Energy plc: Paul Ellis, Chief
Executive Officer, firstname.lastname@example.org, +44 (0)20 7487 7300; Chris
Hearne, Finance Director, email@example.com, +44 (0)20 7487 7300;
JPMorgan Cazenove: Steve Baldwin, firstname.lastname@example.org, +44
(0)20 7588 2828; Tristone Capital Limited: Majid Shafiq,
email@example.com, +44 (0)20 7355 5872; Pelham Public Relations -
UK: James Henderson, firstname.lastname@example.org, +44 (0)20 7743 6673;
Alisdair Haythornthwaite, email@example.com, +44 (0)20
7743 6676; CHF - Canada: Sasha Abrams, firstname.lastname@example.org, (416) 868-1079