Licence LO 11/1, Midleton and West Midleton Prospects

Serica 100%

The Licence (LO 11/1) covers Blocks 11/5, 11/10, 11/15, 12/1, 12/6 and 12/11 (part), an area of approximately 1,230 square kilometres in the Rockall Basin. Together with Serica’s Exploration Licence FEL 1/09, covering Blocks 5/17, 5/18, 5/22, 5/23, 5/27 and 5/28, Serica has two licences to explore some 2,220 square kilometres in the Rockall Basin. They contain an area of proven hydrocarbon potential in which large prospective structures have already been identified from existing 3D seismic data.

LO 11/1 contains two large pre-Cretaceous fault block prospects, Midleton and West Midleton. Midleton is the larger of the two prospects, with an areal closure of 61 square kilometres, and has the potential for P50 reserves of 1431 bcf of gas and 94 mmbls of condensate. These prospects complement and provide additional diversity to the large Muckish prospect lying in Serica’s acreage just to the north east. Given the size of the prospects and their position in a proven gas-condensate bearing basin, the Licence significantly expands the options open to Serica to deliver an active drilling campaign in the area.

Under the terms of the LO 11/1 Licence, Serica will undertake 2D and 3D seismic reprocessing work and other geological studies in the first two years to firm up the prospects following which the Company has an option to convert the Licence into a full Exploration Licence.