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Serica Energy plc
Serica Energy plc
08/23/2012 | Press release
Genel Energy to farm-in to Serica's Sidi Moussa Block, offshore Morocco
distributed by noodls on 08/23/2012 03:43
Serica Energy plc
(the "Company")
Genel Energy to farm-in to Serica's Sidi Moussa Block, offshore Morocco
London, 23rd August 2012 - Serica Energy plc (AIM & TSX: SQZ) announces that, subject to the consent of the Moroccan Authorities, Genel Energy plc ("Genel") will be joining Serica's wholly owned subsidiary Serica Sidi Moussa B.V. ("Serica") and its partners, San Leon Offshore Morocco B.V. and Longreach Oil and Gas Ventures Limited (respectively "San Leon" and "Longreach"), in the exploration of the set of permits which comprise the Sidi Moussa Offshore area ("Sidi Moussa") in Morocco.
Serica, San Leon and Longreach (together the "Sidi
Moussa Participants") hold a combined 75% equity
interest in Sidi Moussa with the balancing 25% interest held
by the Office National des Hydrocarbures et des Mines
("ONHYM"), the Moroccan State oil company. In
accordance with the terms of the permits the costs relating
to ONHYM's 25% interest are carried in full by the Sidi
Moussa Participants during the exploration and appraisal
stage.
Under the transaction, Genel will acquire a 60% equity
interest in Sidi Moussa, pro rata from each of the Sidi
Moussa Participants according to its equity interest. In
return Genel will pay a contribution to past costs of US$1.3
million (US$433,000 net to Serica) and pay for the drilling
of the commitment well required in the First Extension Period
(including the full costs relating to the ONHYM carried
interest), up to a cap of US$50 million. As a result of the
farm-out, Serica will hold an ongoing interest of 5% in the
Sidi Moussa permits with San Leon and Longreach holding 8.5%
and 1.5% respectively.
Over the past two and a half years Serica and its partners
have been carrying out extensive geological and geophysical
analyses of the sub surface in Sidi Moussa. Having identified
several prospective exploration targets a farm-out process
was initiated to attract a partner with the requisite
financial and technical capability to drill in the relatively
deep waters of Sidi Moussa. The transaction with Genel is the
successful result of that process.
The partnership has already informed the Moroccan authorities
of their intention to proceed into the First
Extension Period, which entails the drilling of a commitment
well.
Tony Craven Walker, Serica's Chairman and Interim Chief Executive said:
"The work undertaken by Serica and our partners in Sidi Moussa has demonstrated the considerable exploration opportunity of the Sidi Moussa permits. We are therefore very pleased that a company of
Genel's financial and technical capability has decided to join us through a transaction which enables
Serica to participate in near term exploration drilling with the potential for very large upside.
The farm-out of our interest in Sidi Moussa follows similar transactions in Namibia and the UK and demonstrates the underlying quality of our international exploration portfolio. "
Enquiries:
Serica Energy plc
Tony Craven Walker, Chairman & Interim CEO
Peter Sadler, Business
tony.cravenwalker@serica-energy.com +44 (0)20 7487 7300
Development Director peter.sadler@serica-energy.com
+44 (0)20 7487 7300
Chris Hearne, CFO chris.hearne@serica-energy.com
+44 (0)20 7487 7300
J.P.Morgan Cazenove
Michael Wentworth-Stanley michael.wentworthstanley@jpmorgancazenove.com+44 (0)20 7588 2828
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RBC Capital Markets Matthew Coakes |
+44 (0)20 7653 4000 |
|
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College Hill Nick Elwes |
+44 (0)20 7457 2020 |
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Catherine Wickman Alexandra Roper |
+44 (0)20 7457 2020 +44 (0)20 7457 2020 |
The technical information contained in the announcement has been reviewed and approved by Peter Sadler, Business Development Director of Serica Energy plc. Peter Sadler is a qualified Petroleum Engineer (MSc Imperial College, London, 1982) and has been a member of the Society of Petroleum Engineers since 1981.
NOTES TO EDITORS
Serica Energy was formed in 2004 and, since then, has drilled
19 wells in locations as diverse as the UK Offshore, the
Atlantic margin offshore Ireland, offshore Indonesia (North
West Sumatra, East Kalimantan and Java) and offshore Vietnam.
Seventeen of these wells were drilled by the Company as
Operator, fourteen of the wells encountered oil or gas and
six of these were commercial. The first of the commercial
discoveries, the Kambuna field in North West Sumatra, was
developed by the Company. The second, the Columbus field in
the UK North Sea, is now in the pre-development stage with
project sanction targeted for early 2012. The Company also
has a residual economic interest in the Bream oil field
offshore Norway, which will be crystallised when the field is
developed, and licence interests offshore Ireland, Morocco
and Namibia.
The Company is listed on both the Toronto Stock Exchange and
the London AIM under the ticker SQZ. To receive Company news
releases via email, please contact nick.elwes@collegehill.com
and specify
"Serica press releases" in the subject line.
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 anticip ated
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.
