Silvermere Energy

Silvermere Energy Plc  the  independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the US is pleased to provide an update on recent developments at the I-1 Well at its Mustang Asset located in Kleberg County, Texas waters in the Gulf of Mexico. The Company’s Mustang Asset consists of a 16.66% working interest in the I-1 Well (with the Company bearing 33.33% of the costs up to completion of the well’s tie-in) and a 33.33% working interest in the remainder of the Mustang Licence Area. Silvermere received confirmation from the operator, Dominion Production Company LLC (“Dominion”) that a tripod platform fabrication, installation and tie-in contract with Laredo Construction Inc (“Laredo”) has been entered into on behalf of the working interest partners.

Commenting on these developments, Andy  Morrison, Chief Executive of Silvermere said:-

“Since acquiring our interest in the Mustang Asset last month, we have made a good start in working directly with the operator, Dominion, to get the I-1 Well closer to production and we look forward to a successful partnership with them. We are currently on schedule and a number of improvements and upgrades have been added to the originally anticipated fabrication and tie-in project without any increase in anticipated project costs.”

Further updates will be provided as the project proceeds.

Frank Moxon (Non-Executive Chairman), is an experienced corporate financier specialising in natural resources. Now practising through his own firm, Hoyt Moxon, he was previously head of corporate finance and head of natural resources at Williams de Broë at the time it was acquired by Evolution Securities. He holds a number of non-executive directorships including Cove Energy Plc (AIM quoted), Whetstone Minerals Ltd (TSX-V quoted) and Imperial Minerals Plc (Plus quoted) and is a fellow of the Energy Institute and a member of the Petroleum Exploration Society of Great Britain.

Andy Morrison (Chief Executive), has spent his entire career in the oil and gas industry. From 1982 until 1999, he worked for Shell in a variety of commercial roles in the UK, Asia and South America. He then worked for BG and subsequently for BOC in new business development and strategic roles. From 2007 until 2010 he was CEO of Xtract Energy plc which is quoted on AIM and which manages a portfolio of projects in oil and gas exploration and production.

Bruce Evers (Non-Executive Director), has 27 years experience of working in the City including roles at Panmure Gordon, Schroders,Yamaichi, Investec and Evolution. He has extensive experience of the oil and gas sector as an analyst, specialist salesman and corporate broker. He has advised and raised money for numerous oil and gas companies with operations in many different areas of the world.

Stewart Dalby (Non-Executive Director), is the founding editor and publisher of Oilbarrel.com, a leading website and conference business for small cap and mid-tier oil and gas companies that he successfully sold to Rivington Street Holdings in 2008. He has over 40 years experience as a journalist and commentator on the global oil and gas industry during which he has acquired a broad range of industry contacts at both board and technical levels. He has previously worked as a stockbroker and investment analyst.

Number of Securities in Issue
The Company has 16,980,750 ordinary shares of 0.1 pence each. The Company holds no shares in treasury.

Percentage of AIM Securities not in public hands
The percentage of AIM Securities not in public hands is 59.80%.

Updated from company website 22.09.11