Operations in Vietnam

Block 06/94

Serica 33.33%, Pearl Energy 33.34% (operator), Lundin Petroleum 33.33%

Serica was awarded a 33.33% interest in Block 06/94 in February 2007. The operator of the block is Pearl Energy (a subsidiary of Aabar Petroleum Investments Company)..

The original 06 and 12E blocks were explored by BP, Statoil and ONGC. At the end of the five-year exploration period, BP retained an 870 square kilometre production area around its discoveries, the Lan Tay and Lan Do gas fields. Serica’s Block 06/94 represents part of the area that BP was required to relinquish in 1994 surrounding the Lan Tay and Lan Do fields. These fields had original reserves of around two trillion cubic feet of gas and are currently producing about 300 mmcfd, providing around 40% of the entire Vietnamese electricity supply. The electricity market is expected to see rapid expansion over the next ten years.

There are several oil and gas prospects and leads already identified within Block 06/94 and the south western part of the block is believed to be prospective for oil, especially since two oil discoveries, Dua and Blackbird, were made recently by Premier Oil in Block 12E immediately to the west of Block 06/94.

Serica will begin acquiring a new 3D seismic programme in 2007 to optimise locations for the planned exploration wells to be drilled in the Block.