Serica Energy plc
("Serica" or the "Company")
Drilling commences in Foum Draa licence, offshore Morocco
London, 28 October 2013 - Serica Energy plc (TSX & AIM: SQZ) is pleased to confirm 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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NOTES TO EDITORS
Serica Energy is an oil and gas exploration and production company with exploration and development assets in the UK and Norway and exploration interests in the Atlantic margins offshore Ireland and West Africa. The Company is actively exploring its licences offshore UK, Ireland, Morocco and Namibia in partnership with other companies. Further information on the Company can be found at www.serica-energy.com.
The technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Operating Officer of Serica Energy plc. Mitch Flegg (BSc in Physics from Birmingham University) has 32 years of experience in oil & gas exploration and development and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
The Company is listed on both the Toronto Stock Exchange and the London AIM under the ticker SQZ.
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FORWARD LOOKING STATEMENTS
This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond Serica Energy plc's control, including: geological, geophysical and technical risk, the impact of general economic conditions where Serica Energy plc operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Serica Energy plc's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Serica Energy plc will derive therefrom.
