Agrees Farm-Out Rig

RNS Number : 8830D

Serica Energy plc

19 September 2008

 

SERICA ENERGY AGREES UK NORTH SEA FARM-OUT

RIG CONTRACTED TO DRILL CHABLIS IN OCTOBER

London, 19 September 2008 - Serica Energy plc (AIM & TSX-V: SQZ) ('Serica' or 'the Company') is pleased to announce an agreement with Hansa Hydrocarbons Limited ('Hansa') for Hansa to farm-in to Serica's UK licences covering Block 48/16b and Block 48/17d (the 'Licences') in the Southern North Sea. Completion is subject to the receipt of UK government consent.  

Serica currently has a 100% working interest in the Licences. Under the terms of the farm-out agreement, Hansa will earn a 35% working interest in the Licences in return for contributing on a promoted basis to the cost of a well to appraise the Chablis prospect in Block 48/16b, scheduled to commence drilling in mid October, 2008. Serica will remain as operator and retains the remaining 65% working interest in the licence.

To meet this drilling programme Serica announces that it has contracted the Northern Offshore Energy Enhancer jack-up drilling rig to drill the well. The well to be drilled will appraise the gas-bearing Permian Leman sandstone reservoir encountered in well 48/16a-2 drilled in 2002 and will be located approximately two kilometres to the east of the earlier well. The Leman sandstone is the reservoir for the numerous producing gas fields adjacent to the Licences. Further information on Serica's Chablis prospect can be found in the most recent presentation posted on Serica's web-site at www.serica-energy.com

Enquiries:

Serica Energy plc
Paul Ellis, Chief Executive Officer	[e-mail]	[phone]
Chris Hearne, Finance Director	[e-mail]	[phone]
JPMorgan Cazenove
Steve Baldwin	[e-mail]	[phone]
Tristone Capital Limited
Majid Shafiq	[e-mail]	[phone]
Pelham Public Relations -UK
James Henderson	[e-mail]	[phone]
Alisdair Haythornthwaite	[e-mail]	[phone]
CHF - Canada
Sasha Abrams	[e-mail]	[phone]

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

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