Serica Energy Regulatory News (SQZ)

16 Jan 2008 07:01

Serica Energy plc16 January 2008 Serica Energy plc ("Serica" or the "Company") KAMBUNA GAS SALES AGREEMENT London, 16 January 2008 - Serica Energy plc (AIM & TSX-V: SQZ) announces thatthe terms of a sale of gas from the Kambuna Field offshore North Sumatra,Indonesia, have been agreed. The majority of the gas from the Kambuna Field will be sold to the IndonesianState electricity company Perusahan Listrik Negara ("PLN") at an initial priceof US$4.50 per million Btu escalating at 3% per annum. The gas will bedelivered to Pangkalan Brandan and will transported to PLN's Belawan powerstation near the city of Medan, via the existing gas transmission network.Medan, in North Sumatra, is the third largest city in Indonesia . The remainderof the gas will be sold at an equal or higher price to an industrial customerthrough an auction process, with bids due in early February. Kambuna gas has a high calorific value, and the Company expects an initialrealisation of over US$5.00 per thousand standard cubic feet. In addition tothe gas, Serica will initially be marketing 4,000-5,000 barrels per day ofcondensate at a price close to that of crude oil. The Kambuna Field is currently under development. A production platform will beinstalled later this month and three development wells will then be drilled andcompleted. Onshore and offshore facilities and a 14-inch offshore pipeline willbe installed later this year, with production targeted to commence by the end of2008. Serica is the operator of the Kambuna Field and holds an interest of 65% in theproject. Paul Ellis, Serica Chief Executive said: "We are delighted to have achievedexcellent terms for the sale of gas from Kambuna. The city of Medan has beenshort of power for some years and we are pleased that we shall be able to makethis new supply of gas available for power generation and industrial uses. " Enquiries: Serica Energy plcPaul Ellis, paul.ellis@serica-energy.com +44 (0)20 7487 7300 Chief Executive OfficerChris Hearne, chris.hearne@serica-energy.com +44 (0)20 7487 7300 Finance Director JPMorgan CazenoveSteve Baldwin steve.baldwin@jpmorgancazenove.com +44 (0)20 7588 2828 Tristone Capital LimitedMajid Shafiq mshafiq@tristonecapital.com +44 (0)20 7355 5872 Pelham Public Relations -UKJames Henderson james.henderson@pelhampr.com +44 (0)20 7743 6673Alisdair Haythornthwaite alisdair.haythornthwaite@pelhampr.com +44 (0)20 7743 6676 CHF - CanadaSarah Gingerich sarah@chfir.com +1 416 868 1079 The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this release. To receive Company news releases via email, please contact sarah@chfir.com andspecify "Serica press releases" in the subject line. This information is provided by RNS The company news service from the London Stock Exchange