Serica farms out Slyne basin interest

Serica Energy has farmed out interest in exploration license PEL 01/06 to RWE Dea AG.

Offshore staff

LONDON -- Serica Energy has farmed out interest in exploration license PEL 01/06 to RWE Dea AG. The license covers three blocks in the southern Slyne basin off the west coast of Ireland.

Serica currently has a 100% working interest in license PEL 01/06 and has identified four prospects lying in the blocks, two of which exhibit strong amplitude anomalies and are ready to drill. Each of the prospects, if successful, has the potential to contain up to 1 tcf of gas, the company says.

Under the terms of the farm-out agreement, RWE will earn a 50% working interest in PEL 01/06 in return for contributing to the cost of drilling the first well under the license, scheduled for 2Q 2009. Serica will remain as operator and retains the remaining 50% working interest.

Serica has contracted the semisubmersibleGSF Arctic II to drill the first well. The well will test the Triassic Sherwood sandstone reservoir expected to be encountered in the blocks and will be drilled on either the Bandon or the Boyne prospect. The Sherwood sandstone is the gas-bearing reservoir in the Corrib field lying to the north of the license.

09/02/2008

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