Oslo, 30th June 2008:
Spring Energy has reached agreement with Serica Energy to acquire their Norwegian portfolio consisting of a 20 % working interest in two production licenses, PL406 and PL407.
PL407 contains the Bream and Brisling oil discoveries, whilst the 18/10-1 oil discovery is located within PL406. An appraisal well on Bream is planned within the next 6-9 months with the purpose to prove up the commerciality of this discovery.
The NPD report the Bream discovery to hold an estimate of 60 MB gross recoverable resources (12 MB net to Spring Energy). The 18/10-1 oil discovery is a very likely tie-back candidate to Bream, provided that Bream is deemed commercially viable. In addition there is further upside potential in the prospects already identified within these licenses.
The effective date of the transaction is 1 January 2008. The transaction is subject to authority approval.
“This transaction is strategically important to Spring Energy as it provides participation in licenses with a near term work program aiming to commercialise already discovered resources. We are in the process of being pre-qualified as a licensee and are also working to secure an exploration loan facility to finance our planned high activity going forward” states Roar Tessem, CEO of Spring Energy.