First Day of AIM trading!Serica Energy announces first day of unconditional dealings on AIM
TORONTO, Dec. 13 /CNW/ - Serica, an international oil and gas exploration
company with principal activities in the UK North Sea, Indonesia and Spain,
announces that the Company's Ordinary Shares of US$0.1 each have today been
admitted to trading on the AIM Market of the London Stock Exchange ("AIM").
The Company's trading symbol is "SQZ".
Admission Details
- 67,368,421 Ordinary Shares have been conditionally placed with
investors by JPMorgan Cazenove, the Company's Nominated Adviser and UK
Broker, to raise pnds stlg 64.0 million (before expenses) for the
Company.
- On admission to AIM a total of 142,548,580 shares were in issue
capitalising the Company at pnds stlg 135.4 million at the placing
price of 95p per share.
- The Company is also quoted on the TSX-V Exchange (TSX-V: SQZ). Unless
permitted by Canadian securities legislation, the new Ordinary shares
may not be traded in Canada before 14 April 2006.
Use of Proceeds
- On 6 October 2005 the Company announced the successful drilling of the
Kambuna-2 well, offshore Northern Sumatra. Serica plans to submit a
preliminary plan of development for the Kambuna Field, in which it is
operator and has a 55 per cent working interest, by year end.
- Following this success, funds will be used to finance Serica's planned
exploration, appraisal and development program over the next
24 months, principally on operated blocks where Serica has substantial
interests
- In 2006 and 2007, the Company estimates that it will spend
US$60 million on its exploration and appraisal program and a
further US$34 million on the development of the Kambuna Field, and
of the Singa Field in Southern Sumatra
- Eleven exploration or appraisal wells are planned over the period
- The Gaffney, Cline & Associates Ltd Competent Person's Report
confirms the potential for drilling prospects to add significantly
to the Company's reserve base
- Appraisal and development over next 24 months will accelerate
Serica's objective of bringing its four discoveries onto production
Key Strengths
The Directors consider the key strengths of Serica to be:
- Highly experienced management with sustained record of creating value
for shareholders and particular knowledge of the areas in which Serica
operates
- Operator with working interests of 50-100 per cent in all of its
properties other than in the Lematang PSC
- A diverse portfolio including existing oil and gas discoveries and
ready to drill exploration prospects as detailed in the Gaffney, Cline
& Associates Ltd Competent Person's Report:
- Four existing discoveries
- Two near-term development opportunities with production targeted to
commence in 2008
- Thirty-two prospects and leads, which require further evaluation,
including seismic and drilling
Tony Craven Walker, Chairman of Serica, commented:
"Serica's technical team has assembled a portfolio of exploration
properties, in Indonesia, the UK North Sea and in Spain, which have
considerable upside potential.
The successful outcome of Kambuna-2 and Togar-1A, our first two wells
drilled as operator, highlights this potential.
Our admission to AIM and the accompanying fundraising gives Serica the
financial resources to explore, appraise and develop its quality asset base
which has the potential to generate material value for shareholders."