15th Mar 2007 13:30
Serica Energy plc15 March 2007 For immediate release: Thursday 15 March 2007 SERICA ENERGY ANNOUNCES BILITON FARM-OUT AGREEMENT London, 15 March, 2007 - Serica Energy plc (AIM and TSX Venture: SQZ) is pleasedto announce the farm-out of a percentage of the Company's interest in theBiliton PSC, Indonesia, whilst retaining the role of Operator. In line with its strategy to spread exploration risk and manage costs, Sericahas signed an agreement with Nations Petroleum, a subsidiary of the privatelyowned oil exploration and production company Nations Energy Company Ltd., tofarm-out a 45% interest in the Biliton PSC, subject to required regulatoryapproval. In return Nations Petroleum will bear the majority of the costs of thetwo well drilling programme scheduled to commence in Q2 2007. Serica will remain as operator and retain a 45% interest in the Biliton PSC. Anumber of potentially significant prospects have been identified within the PSC,which is located in a virtually unexplored basin, and the Seadrill-5 drillingrig is contracted from Q2 2007 to drill the two exploration wells back-to-back. Paul Ellis, Chief Executive, said: "We are extremely pleased to announce the farm-out of a 45% interest in theBiliton PSC, whilst retaining operatorship and a 45% interest for Serica. In line with the strategy announced at the time of our UK fundraising inDecember 2005, this allows Serica and its shareholders significant exposure tohigh impact exploration drilling whilst managing the cost to the Company." Enquiries: Serica Energy plcPaul Ellis, [email protected] +44 (0)20 7487 7300 Chief Executive OfficerChris Hearne, Finance Director [email protected] +44 (0)20 7487 7300 Pelham Public Relations -UKJames Henderson [email protected] +44 (0)20 7743 6673Alisdair Haythornthwaite [email protected] +44 (0)20 7743 6676 CHF Investor Relations - CanadaJan Moir [email protected] +1 416 868 1079Heather Colpitts [email protected] +1 416 868 1079 JPMorgan CazenoveSteve Baldwin +44 (0) 207 588 2828 Background Notes Serica Energy plc is an international oil and gas exploration company withoperations in the UK North Sea, Norway, Ireland, Spain, Indonesia and Vietnam.The Company's ordinary shares are listed in London on AIM and on the CanadianTSX Venture Exchange under the symbol "SQZ". The 2005 Annual Report and Accountscan be obtained from the Company's web-site www.serica-energy.com and atwww.sedar.com. Forward Looking Statements This disclosure contains certain forward looking statements that involvesubstantial known and unknown risks and uncertainties, some of which are beyondSerica Energy plc's control, including: the impact of general economicconditions where Serica Energy plc operates, industry conditions, changes inlaws and regulations including the adoption of new environmental laws andregulations and changes in how they are interpreted and enforced, increasedcompetition, the lack of availability of qualified personnel or management,fluctuations in foreign exchange or interest rates, stock market volatility andmarket valuations of companies with respect to announced transactions and thefinal valuations thereof, and obtaining required approvals of regulatoryauthorities. Serica Energy plc's actual results, performance or achievementcould differ materially from those expressed in, or implied by, these forwardlooking statements and, accordingly, no assurances can be given that any of theevents anticipated by the forward looking statements will transpire or occur, orif any of them do so, what benefits, including the amount of proceeds, thatSerica Energy plc will derive there from. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. To receive Company news releases via email, please contact [email protected] and specify "Serica press releases" in the subject line. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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