Serica Energy Regulatory News (SQZ)

10 Oct 2006 12:00

Serica Energy plc10 October 2006 SERICA ENERGY PLC INDONESIAN FIELD DEVELOPMENT UPDATE London, October 10, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ) providesthe following update regarding its gas field developments in Indonesia. Kambuna Field Development In the Glagah-Kambuna Technical Assistance Contract (TAC) area, Serica isdeveloping the Kambuna Field on behalf of its partners and the Indonesian stateoil and gas company, PT Pertamina Persero ("Pertamina"). The first productionfrom the field remains targeted for 2008 at initial rates of approximately 50million cubic feet per day of gas and 5,000 barrels per day of condensate. Engineering design studies for the gas export pipeline are being carried out byWood Group and the project schedule is being finalized with a view to fullproject sanction being given prior to the year end. Serica is working withPertamina to determine the optimal route for the pipeline for gas and LPG salesinto the Medan area in north Sumatra. Condensate (very light hydrocarbonliquids separated from the gas and sold as oil) will be stored in a FloatingProduction, Storage and Offtake vessel (FPSO) and loaded into shuttle tankersoffshore for sale to international markets. Tanjung Perling Field Development In the adjacent Asahan Offshore Production Sharing Contract (PSC), theIndonesian oil industry regulatory authority ("BPMigas") has requested furthertechnical information with respect to the marginal Tanjung Perling Field, whichSerica proposed to develop as an incremental project to the Kambuna Field.There may be insufficient time to satisfy the request of the regulatoryauthority prior to 16th December 2006, when the exploration period of the PSCwould otherwise expire. Serica and its partners are holding constructivediscussions with BPMigas to agree a mutually satisfactory means to bring gasfrom the Asahan Offshore PSC to market and ensure continuing operations on theblock. Background Notes Serica Energy plc is an international oil and gas exploration company withoperations in Indonesia, the UK North Sea, Spain, Ireland and Vietnam. TheCompany's ordinary shares are listed in London on AIM and on the Canadian TSXVenture Exchange under the symbol "SQZ". The 2005 Annual Report and Accounts areavailable at www.serica-energy.com and www.sedar.com. Enquiries: Serica Energy plcPaul Ellis, pellis@serica-energy.com +44 (0)20 7487 7300Chief Executive OfficerChris Hearne, chearne@serica-energy.com +44 (0)20 7487 7300Finance Director 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 Investor Relations - CanadaJan Moir jan@chfir.com +1 416 868 1079 x237Heather Colpitts heather@chfir.com +1 416 868 1079 x223 Forward Looking Statements This disclosure contains certain forward looking statements that involvesubstantial known and unknown risks and uncertainties, some of which are beyondSerica Energy plc's control, including: the impact of general economicconditions where Serica Energy plc operates, industry conditions, changes inlaws and regulations including the adoption of new environmental laws andregulations and changes in how they are interpreted and enforced, increasedcompetition, the lack of availability of qualified personnel or management,fluctuations in foreign exchange or interest rates, stock market volatility andmarket valuations of companies with respect to announced transactions and thefinal valuations thereof, and obtaining required approvals of regulatoryauthorities. Serica Energy plc's actual results, performance or achievementcould differ materially from those expressed in, or implied by, these forwardlooking statements and, accordingly, no assurances can be given that any of theevents anticipated by the forward looking statements will transpire or occur, orif any of them do so, what benefits, including the amount of proceeds, thatSerica Energy plc will derive there from. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. To receive Company news releases via email, please contact heather@chfir.com and specify "Serica press releases" in the subject line. This information is provided by RNS The company news service from the London Stock Exchange