Serica currently has a 100% working interest in the licenses. Under the terms of the farm-out agreement, Hansa will earn a 35% working interest in the licenses in return for contributing on a promoted basis to the cost of a well to appraise the Chablis prospect in Block 48/16b, scheduled to commence drilling in mid October 2008. Serica will remain as operator and retains the remaining 65% working interest in the license.
To meet the drilling program, Serica has contracted the Northern Offshore Energy Enhancer jack-up drilling rig to drill the well. The well to be drilled will appraise the gas-bearing Permian Leman sandstone reservoir encountered in well 48/16a-2 drilled in 2002 and will be located approximately two kilometers to the east of the earlier well. The Leman sandstone is the reservoir for the numerous producing gas fields adjacent to the licenses.
