2009-08-17-2008-08-01

To buy co., gaining 20% WI in offshore PL406, PL407.

Oslo, Norway-based Spring Energy Norway AS plans to acquire Serica Energy Norge AS from Serica Energy Plc, London, (London Aim, Toronto Venture: SQZ) for an undisclosed price. Serica's Norwegian subsidiary holds a 20% working interest in Norwegian offshore licenses PL406 and PL407. Spring Energy in return will pay past costs relating to the blocks and includes a contingent payment to reflect the value of Bream Field, should appraisal of that field be successful and it be brought onto production. Serica chief executive Paul Ellis says, "Norway is not core to the company's portfolio. Set against slower-than-anticipated progress with the field-appraisal program and the substantial cost of drilling and development in Norway, disposal of our Norwegian assets to Spring Energy enables us to release Serica's resources for more immediate projects where we see a higher potential for near-term, greater return." He adds the deal allows Serica to retain a significant part of the upside value of Bream Field without further appraisal and development costs.