East Irish Sea: Serica Energy Commences Drilling Conan Exploration Well

Serica Energy announces that on Monday 10th May it commenced drilling the Conan exploration well in Block 113/26b in the East Irish Sea. The well will be drilled by the Ensco 80 jack-up drilling rig to a depth of approximately 5,000 feet and is anticipated to take approximately 24 days to drill.

Conan is a significant Triassic Sherwood Sand gas prospect identified on 3D seismic data and covers an area of up to 28 square kilometres in Blocks 113/26b and 113/27c. It is adjacent to the producing Millom gas field and to the recent Rhyl gas discovery. Being close to existing gas production infrastructure, a discovery at Conan could be developed relatively quickly. The Conan prospect is believed to be the largest undrilled Sherwood Sand seismic anomaly in the East Irish Sea.

Following the farm out announcement on 20 January 2010 Serica retains a 65% interest in Conan with 70% of the well costs being funded by its partner, Agora Oil and Gas, which will earn a 35% interest. Serica is operator of Blocks 113/26b and 113/27c.

Paul Ellis, Chief Executive of Serica, commented:

“We are delighted to have commenced drilling at Conan, a large gas prospect off the west coast of England, about 50 kilometres northwest of Blackpool and within 10 kilometres of the Morecambe gas field. Conan is the first well in the Company’s exciting 2010 exploration programme, a programme that is targeting total prospective resources of 160 mmboe net to Serica (90 mmboe on a risked basis) and that we believe has the potential to deliver great value to shareholders.”

Serica Energy plc is an oil and gas exploration and production company using specialised geophysical technology to create value through the discovery of new hydrocarbon reserves. Serica is based in London, England, and holds exploration and production licences principally in the UK North Sea and East Irish Sea, the Atlantic Margins of Ireland and Morocco and in Indonesia. The Company’s key producing and development assets are a 25% interest in the producing Kambuna field offshore Indonesia and a 50% stake in the UK Central North Sea Columbus field, under development.

Serica’s business objective centres on building shareholder value through successful exploration and appraisal drilling. Serica is also focused on improving its market liquidity, optimising its risk profile and managing the company’s portfolio of opportunities through acquisition and divestment. Serica’s strategy involves minimising its exploration drilling costs through promoted farm-outs while retaining high working interests in the potential for exploration success.

Serica has a material 2010 exploration programme, drilling five wells that are targeting a total of around 90 mmboe risked prospective resources net to the Company.

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Source: Serica, May 11, 2010;