Serica Energy - The new beginning.

It is definitely a retrograde gas condensate field since the condensate to gas ratio is 60.6 barrels per million cubic feet of gas. The good condensate yield will help the economics of the project.

At 56/64th choke setting and 1200 pounds per square inch of flowing wellhead pressure for the flow test, there is room for higher flow rate when the well is put on production. They could probably increase the flow rate for the suspended well from 17 to 25 million cubic feet per day. If they have additional development wells that are drilled high angle, the flow rate could probably increase to over 35 million cubic feet per day which is equivalent to 5800 barrels of oil equivalent per day; plus the associated condensate of approximately 2000 barrels per day.

Inert gas content of only 2%, that is nothing to be concerned about.

As for marketing the gas, since BG International is one of their partners, the path to market for the gas is likely to be a smooth and profitable one.

The only remaining uncertainty is the size of the reservoir structure. Uncertainties will be reduced with appraisal drilling (looks they will agree to drill it in 2007). It could take only 6 months thereafter to bring the field on production.

So far so good, it does look like Columbus will be a good project for Serica and its' partners.

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