Serica Energy plc

Serica Energy plc

June 25, 2012 02:15 ET

Approval Given for BP to Join Serica in Luderitz Basin Licences, Namibia

LONDON, UNITED KINGDOM--(Marketwire - June 25, 2012) - Serica Energy plc ("Serica" or the "Company") (AIM:SQZ)(TSX:SQZ) is pleased to announce that the Minister of Mines and Energy in Namibia has consented to the assignment by Serica of a 30% interest in Serica's Luderitz Basin Licence 0047 to Exploration (Luderitz Basin) Limited, a wholly owned subsidiary of BP, and the novated Licence has been approved by the Ministry.

The assignment results from the farm-in by BP to Serica's Licence offshore Namibia which was announced in March this year. Under the terms of the farm-in, BP has agreed to earn a 30% interest in the Licence by meeting the full cost of a 3D seismic survey over an area of up to 4,150 square kilometres across the Licence.

The amendment to the Licence has been ratified by the Petroleum Commissioner and the participants in the block are now as follows:

Serica Energy Namibia B.V. (a wholly owned subsidiary of Serica) - Operator 55%
Exploration (Luderitz Basin) Limited (a wholly owned subsidiary of BP) 30%
National Petroleum Corporation of Namibia (Pty) Limited (NAMCOR) 10%
Indigenous Energy (Pty) Limited 5%

As a result of the Licence novation, BP will reimburse Serica a sum covering Serica's past costs. BP has an option to acquire a further 37.5% of the licence from Serica by meeting the full cost of drilling and testing an exploration well to the Barremian level.

Tony Craven Walker, Chairman and Interim Chief Executive of Serica commented.

"We are pleased that the Minister of Mines and Energy in Namibia has consented to BP joining Serica and its partners in our exploration plans for the Luderitz Basin blocks. Both Serica and BP have shown significant commitment to the exploration efforts taking place offshore Namibia and we welcome the support and assistance which has been given by the Ministry to enable joint operations to proceed so quickly, smoothly and efficiently.

Serica's Annual General Meeting is being held in London on 28 June 2012 and we hope to give further updates to our shareholders on operations at the meeting."

The technical information contained in the announcement has been reviewed and approved by Peter Sadler, Business Development Director of Serica Energy plc. Peter Sadler is a qualified Petroleum Engineer (MSc Imperial College, London, 1982) and has been a member of the Society of Petroleum Engineers since 1981.


Serica Energy was formed in 2004 and, since then, has drilled 19 wells in locations 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 by the Company as Operator, fourteen of the wells encountered oil or gas and six of these 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 now in the project sanction stage. The Company also has a residual economic interest in the Bream oil field offshore Norway, which will be crystallised when the field is developed, and licence interests offshore Ireland, Morocco and Namibia.

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

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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.

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