Serica Energy to retain 50% interest in North Sea Columbus discovery well



    LONDON, June 7 /CNW/ - Serica Energy (UK) Limited ("Serica") and BG
International Limited ("BG") have mutually agreed not to complete the
transaction, announced on November 14, 2006, under which Serica would have
exchanged a 25% interest in Block 23/16f (containing the Columbus discovery)
for a 25% interest in the neighbouring Block 23/31, operated by BG. Serica and
BG have agreed to continue to pursue the development of Columbus for their
mutual benefit and that of their respective co-venturers.
    Serica, as Operator of Block 23/16f, will now retain its 50% interest in
the Block and in the Columbus discovery well and will press forward with
appraisal of the discovery and potential early development. Discussions have
already commenced with nearby infrastructure owners with a view to reaching a
development sanction decision by the end of the year in the event of a
successful outcome to appraisal drilling.
    Serica has contracted the SEDCO 704 drilling rig to drill up to two
Columbus appraisal wells in Block 23/16f commencing in the third quarter of
this year.
    Paul Ellis, Chief Executive of Serica, said that,

    "We are confident that, with the positive results already obtained from
    the Columbus discovery well, the field is capable of rapid appraisal and
    development and we intend to press ahead with this programme as a high
    priority, particularly given our increased stake in the project."


    Background Notes:

    Serica announced the results of the first well drilled on Columbus on
20th December 2006. The 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 wellhead flowing
pressure was 1,200 pounds per square inch and the inert gas content was less
than 2%.
    On the basis of an independent report carried out by RPS Energy Limited
on behalf of Serica following the drilling of the discovery well, 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. The purpose of
the appraisal wells to be drilled this year is to confirm the most likely
resource figures and investigate the potential upside to these figures, while
obtaining the further data required to refine the development concepts.
    Serica's partners in Block 23/16f are Endeavour Energy UK Limited (25%)
and EOG Resources United Kingdom Limited (25%).

    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.

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    %SEDAR: 00022686E




For further information:

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

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SERICA ENERGY PLC

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