Serica Energy & BG Group in North Sea Asset Swap

Serica Energy

Serica Energy has entered into an agreement with BG International Limited, a subsidiary of BG Group plc that provides for an exchange of adjacent exploration license interests in the UK Central North Sea.

Serica is currently drilling the Columbus prospect in Block 23/16f, in which it has a 50% interest and is the operator. BG has an equity holding in part of the adjacent Block 23/21 ('Part Block 23/21') into which Serica believes the Columbus prospect may extend.

Serica and BG have entered into a cross-assignment agreement that provides, in certain specific circumstances, for Serica to exchange with BG a 25% interest in Block 23/16f for a 25% interest in Part Block 23/21 (excluding the Lomond field) and for BG to participate in the costs of the Columbus well, 23/16f-11. The assignments of interest will be subject to regulatory and partner approvals.

Paul Ellis, Chief Executive Officer, commented:

'We are delighted to have reached this agreement with BG. If Columbus is successful, the prospective common interests of Serica and BG in Blocks 23/16f and 23/21 will enable appraisal wells to be drilled and the development of any discovery to be commenced in the most efficient manner.'