UK 27th Licensing Round Award

RNS Number : 4806U

Serica Energy plc

02 December 2013

 



Serica Energy plc

("Serica" or the "Company")

UK 27^th Licensing Round Award

London, 2 December 2013 - Serica Energy plc (AIM & TSX: SQZ) is pleased to announce that it has been offered a Traditional Licence in the latest stage of the 27th Offshore Licensing Round, announced by the Department of Energy and Climate Change on Friday 29 November.

Block 113/22 in the East Irish Sea has been offeredto a group in which Serica has a 35% interest and is operator for the group. This block is adjacent to Serica Block 113/27c, which contains the Doyle Triassic gas prospect, a fault and dip closed structure which possibly extends into the newly awarded licence.  Work commitments include obtaining 150 kilometres of 2D seismic data and a drill or drop decision on a well within 3 years.

In June 2013, Serica announced that it had agreed to farm-out its interest in Blocks 113/26b & 113/27c to Hydrocarbon Resources Limited ("HRL"), a subsidiary of Centrica, in return for HRL meeting Serica's share of the costs of drilling a well in the Doyle prospect up to a gross well cost of US$17 million.  The farm-out agreement extends to the new licence offered. As a result, Serica will have a 20% interest both in the new licence offered and in Blocks 113/26b & 27c on completion of the farm-out and will be carried on the well.  A site survey has been completed and the well is planned for late 2014.

The participants in the new licence award are:

Serica Energy (UK) Limited - Operator 35%

Hydrocarbon Resources Limited (a subsidiary of Centrica) 30%

MPX Limited 25%  

Agora Limited (a subsidiary of Cairn Energy) 10%

Tony Craven Walker, Chairmanand Interim CEO, commented:

"We are pleased with this award which will enable the group to push forward with drilling operations to evaluate the Doyle prospect.  Agreement is needed between the group and the operator of a nearby wind-farm project before drilling can commence and efforts are being made to bring these to an early conclusion."

Enquiries:

Serica Energy plc
Tony Craven Walker Chairman & Interim CEO	[e-mail]	[phone]
Mitch Flegg, COO	[e-mail]	[phone]
Chris Hearne, CFO	[e-mail]	[phone]
Peel Hunt LLP
Richard Crichton	[e-mail]	[phone]
Charles Batten	[e-mail]	[phone]
RBC Capital Markets
Matthew Coakes	[e-mail]	[phone]
Daniel Conti	[e-mail]	[phone]
College Hill
David Simonson	[e-mail]	[phone]
Catherine Wickman	[e-mail]	[phone]
Alexandra Roper	[e-mail]	[phone]

NOTES TO EDITORS

Serica Energy is an oil and gas exploration and production company with exploration and development assets in the UK and Norway and exploration interests in the Atlantic margins offshore Ireland and West Africa.  Since the formation of the Company in 2004 it has participated in twenty wells drilled in areas as diverse as the UK Offshore, the Atlantic margin offshore Ireland, offshore Indonesia (North West Sumatra, East Kalimantan and Java) and offshore Vietnam.  Seventeen of these wells were drilled as Operator, fourteen encountered oil or gas, six of which were commercial.  The first of the commercial discoveries, the Kambuna field in North West Sumatra, was developed by the Company.  The second, the Columbus field in the UK North Sea, is in the pre-development stage with final project sanction pending.  The Company also has a residual economic interest in the Bream oil field offshore Norway, which will be crystallised when the field is developed.  The Company is actively exploring its licences offshore Ireland, Morocco and Namibia in partnership with other companies.  Further information on the Company can be found at www.serica-energy.com.

The Company is listed on both the Toronto Stock Exchange and the London AIM under the ticker SQZ.

To receive Company news releases via email, please contact [e-mail] and specify "Serica press releases" in the subject line.

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: geological, geophysical and technical risk, 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.

 

END

 

 

MSCBUBDDXXGBGXD