Serica Energy Ord Shs SQZZF

Columbus update

[jcjohn36]

any thoughts on what happened? Serica Energy to retain 50% interest in North Sea Columbus discovery well LONDON, June 7 /CNW/ - Serica Energy (UK) Limited ("Serica") and BG International Limited ("BG") have mutually agreed not to complete the transaction, announced on November 14, 2006, under which Serica would have exchanged a 25% interest in Block 23/16f (containing the Columbus discovery) for a 25% interest in the neighbouring Block 23/31, operated by BG. Serica and BG have agreed to continue to pursue the development of Columbus for their mutual benefit and that of their respective co-venturers. Serica, as Operator of Block 23/16f, will now retain its 50% interest in the Block and in the Columbus discovery well and will press forward with appraisal of the discovery and potential early development. Discussions have already commenced with nearby infrastructure owners with a view to reaching a development sanction decision by the end of the year in the event of a successful outcome to appraisal drilling. Serica has contracted the SEDCO 704 drilling rig to drill up to two Columbus appraisal wells in Block 23/16f commencing in the third quarter of this year. Paul Ellis, Chief Executive of Serica, said that, "We are confident that, with the positive results already obtained from the Columbus discovery well, the field is capable of rapid appraisal and development and we intend to press ahead with this programme as a high priority, particularly given our increased stake in the project."