Operations in United Kingdom

Blocks 48/16b and 48/17d - Chablis discovery

Serica 100%

These contiguous blocks cover a total area of 88 square kilometres in the Southern North Sea. Serica is the operator and holds an interest of 100% in both blocks. Block 48/16b contains the undeveloped Chablis discovery, drilled in 2001 by ConocoPhillips. Block 48/17b was awarded to Serica in the UK 24th Offshore Licensing Round and contains smaller prospects analogous to the Chablis discovery that would provide additional upside potential if Chablis appraisal is successful.

A feasibility study has been carried out that addresses the environmental and technical issues surrounding the potential development of the Chablis field and it appears that standard approaches to development using subsea wellheads tied back to existing infrastructure will be appropriate, although the fact that the field lies within a busy shipping lane means that additional precautions will be required during drilling.

The Chablis discovery well, 48/16b-2, encountered gas in the Rotliegend sandstone but was not tested and one uncertainty will be the deliverability of development wells. It is likely that development would utilize horizontal well technology in order to achieve the highest flow rates possible. The recoverable reserves have been estimated by independent engineers to lie in the range 30-500 billion cubic feet. This wide range is a result of the low structural relief and the uncertainty in the conversion of the seismic structural maps from time to depth, These uncertainties can only be resolved through appraisal drilling and Serica expects to drill the first Chablis appraisal well in the summer of 2008.