Drilling Ops Start in Foum Draa Licence Off Morocco

Serica Energy plc confirms the start of drilling operations in the Foum Draa licence, offshore Morocco.

Cairn Energy, as Operator, announced this morning that drilling operations have commenced with the FD-1 wildcat exploration well using the Cajun Express, a fifth generation semi-submersible drilling unit. The well is located in 1,500 metres of water approximately 120 kilometres offshore and will test the F prospect, a slope apron clastic fan of Cretaceous/Jurassic age. The planned total drilling depth is 5,500 metres True Vertical Depth Sub Sea (TVDSS) and operations are anticipated to take approximately 60 days.

Serica has an 8.33% interest in the Foum Draa licence and is carried on the drilling costs of the well up to a gross cap of US$60 million with an expected limited contribution above this level.

The Foum Draa licence extends over an area of 3,300 square kilometres approximately 150 kilometres south west of Agadir and lies in a highly underexplored area of the Atlantic Margin with water depths ranging between 1,000 and 2,000 metres. A large number of salt diapir related and stratigraphic traps have been mapped on the block. The FD-1 wildcat is drilling a play type previously untested offshore Morocco.

Tony Craven Walker, Chairman and Interim CEO, said

“The spudding of the FD-1 well is the start of what we hope will be an exciting period of drilling for Serica, which kicks off with two wells in our acreage offshore Morocco. In both of these wells our costs are being largely met by others, thus providing the Company and its shareholders with material upside in the case of success and little downside cost. This is particularly relevant in Morocco where the risks are higher due to the frontier nature of the Moroccan blocks. With the spudding of this well commencing our drilling operations we are looking forward to the coming period of increased activity.”

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Press Release, October 28, 2013