Operations in Norway

Blocks

Licence 406

Serica 20%, Premier 40% (operator), Noble 40%

In January 2007, Serica was awarded a 20% interest in offshore Licence 406 in Norway’s 2006 Awards in Predefined Areas (APA) Licence Round. The licence lies in the Egersund Basin of the Norwegian North Sea.

Licence 406 covers an area of approximately 900 square kilometres and includes the 18/10-1 oil discovery drilled in 1980 and tested at 1,800 bopd. This discovery is not thought to be commercial, but Serica has identified exploration prospects within the Licence that appear analogous to the Bream field in Licence 407 (see below). It is planned to acquire a further 3D seismic survey in this Licence in 2008.

Licence 407 - Bream Field

Serica 20%, BG 40% (operator), Premier 20%, Noble 20%

Situated immediately to the north of Licence 406, Licence 407 covers an area of approximately 727 square kilometres and was also awarded to Serica in January 2007 in the APA Licence Round. The Licence includes two oil discoveries. The Bream oil field was discovered in 1972 and was tested at a rate of 1,000 bopd. In 1973, the Brisling oil discovery was made and was tested at rates up to 2,200 bopd.

The oil in place in the Bream field is estimated to lie in the range 250 - 400 million barrels. Serica’s analysis of the available 3D seismic data covering the Bream field indicates that, using modern drilling and production technology, the potentially recoverable oil reserves may lie within a range of 40 - 100 million barrels. The oil is of good quality, 30° API, and a stand-alone production facility is a potential option in today’s market conditions.

Serica expects a Bream appraisal well to be drilled in the first half of 2008 and the anticipates that a development plan for the field will be submitted to the Norwegian authorities early in 2009.