Serica: Seismic Operations Offshore Namibia Making Rapid Progress

Serica Energy plc , 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.”

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Source: Serica Energy, June 19, 2012