Serica Welcomes Centrica Into East Irish Sea Blocks (UK)

Serica Energy plc has reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited (“HRL”) for the farm-out of UK East Irish Sea Blocks 113/26b and 27c (Licence P.1482), in which Serica presently holds a 65% interest.

Under the agreement, HRL will acquire an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica’s share of costs associated with the drilling of an exploration well up to a cap of $17 million.

A gas prospect lying in the north of Block 113/27c, the Doyle prospect has been fully matured as the result of work performed in 2011 and is ready to drill. The site survey for this prospect has recently been completed at no cost to Serica. As plans for the well are ready for early drilling, a fast track timeframe announcement for this is also expected shortly.

The agreement is subject to UK government approval. Completion also requires agreement with the operator of a wind farm planned nearby.

Tony Craven Walker, Serica’s Chairman and Interim Chief Executive said: “We are very pleased to welcome Centrica as a new partner in this licence. We are delighted that Centrica’s local experience can be utilised to drill an exploration well on the Doyle prospect. Doyle is now drill ready following the completion of a recent site survey which was performed at no cost to Serica. I look forward to an early announcement of drilling. This represents the latest in a number of farm-out agreements with high quality and well respected partners further demonstrating our strategy of offering our shareholders exposure to major drilling programmes at minimum cost and risk.”