Serica or its predecessor company has been actively involved in UK exploration since 2001.  The Company currently holds licences in the Central North Sea, the Southern North Sea and the East Irish Sea which include the Columbus field planned for development and several material exploration prospects planned for near-term drilling.

To date, Serica has participated in the drilling of seven wells offshore UK, of which five have encountered hydrocarbons, three in commercial quantities.  In the majority of the wells in which Serica has participated, the cost of drilling has been wholly, or largely, paid for by companies who have farmed-in to Serica’s acreage thus spreading the risk and limiting the downside exposure to the Company.

The most significant of the wells drilled, well 23/16f-11, resulted in the discovery of the Columbus field.  The well was drilled on a seismic anomaly identified by Serica which indicated that gas was trapped in a structural low.  The well flowed 17.5 mmscfd of gas on test with a light oil cut of 60 bbls of condensate per mcf of gas. 

Serica’s portfolio of exploration acreage in the North Sea and East Irish Sea contains a number of clear ready to drill prospects and Serica plans to drill further exploration wells to evaluate the potential of these prospects. An exploration programme is planned for implementation in 2012/2013 comprising wells from Serica’s existing drilling prospect inventory. Any discoveries would be economically attractive as the prospects lie in conventional water depths and within easy reach of existing infrastructure.

The following table provides a summary of Serica’s UK Licences: