Serica Energy plc

Serica Energy plc

June 19, 2012 02:00 ET

Serica Energy-Namibian Seismic Update

LONDON, UNITED KINGDOM--(Marketwire - June 19, 2012) - Serica Energy plc (TSX:SQZ)(AIM:SQZ), an independent oil and gas exploration and production company with major licence interests offshore West Africa and reserves and exploration assets in the North Sea and the Atlantic Margin off Ireland, gives an operational update on seismic operations off the coast of Namibia.

Serica was formally awarded the rights to a 17,400 square kilometre licence in the Central Luderitz Basin on 19 December 2011. In March the Company announced that it had reached agreement with BP under which BP would earn a 30% interest in the licence by meeting the full cost of a 4,150 square kilometre 3D seismic acquisition programme. Serica retains a 55% interest in the licence and is Operator of the licence.

Operations have made rapid progress. The 3D acquisition commenced on 10 May with the 10 streamer vessel Polarcus Nadia. On 17 June the Company passed the 1,500 square kilometre mark and, as a result, has now met the licence obligations for seismic acquisition in full. Data acquisition continues with the survey expected to last through the summer. Data acquired to-date has been of good quality and is expected to fully delineate a number of significant prospects which have already been identified on the licence.

In addition to paying the full cost of the survey BP has an option to acquire a further 37.5% of the licence by drilling and testing a well.

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

"Although we have met with some weather delays we are very pleased with the progress of seismic operations to-date. Within six months of the licence award Serica has completed the seismic acquisition obligations required during the first four year period of the licence, a record achievement. The survey, one of the largest to be undertaken off Namibia, continues with results expected later this year following which, with BP, we will be looking to making a drilling decision.

"Offshore Namibia remains one of the few under-explored regions worldwide with very large resource potential. With the rapid build up of operations Serica has demonstrated its ability as an Operator and its commitment to Namibia. We look forward to completing the survey and moving to the drilling phase."

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 pre-development stage with project sanction targeted for early 2012. 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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