Serica Energy Regulatory News (SQZ)

12 Feb 2008 07:00

Serica Energy plc12 February 2008 Serica Energy plc ("Serica" or the "Company") KAMBUNA FIELD DEVELOPMENT UPDATE London, 12 February 2008 - Serica Energy plc (AIM & TSX-V: SQZ) provides anupdate on development activities in the Kambuna field, offshore NortheastSumatra, Indonesia. Offshore development works are now underway. The production platform has beenpositioned over the Kambuna #2 well and piled to the seabed and the GSF136jack-up drilling rig is now drilling the Kambuna development wells #3 and #4 andwill then complete all three wells for production. Following the previously reported agreement for the sale of gas to theIndonesian State electricity generation company Perusahan Listrik Negara ("PLN"), at an initial price of US$4.50 per million Btu (approximately $5.40 permillion cubic feet) escalating at 3% per annum, tenders for a further quantityof gas have now been received at considerably higher prices and an agreementwill shortly be completed. Being sales to the domestic market, the gas has been contracted under proceduresdetermined by BPMigas, the Indonesian petroleum industry regulator. Thecontract with PLN will account for 28 million cubic feet per day ("mmscfd") andthe new tenders are for a further 12 mmscfd. The Kambuna development wells areexpected to produce at a total rate of 50 mmscfd, leaving 10 mmscfd of gascurrently uncontracted. Serica expects that this future sale of gas will alsoattract a much higher price than that agreed with PLN. In addition to the gas, Serica will initially be marketing 4,000-5,000 barrelsper day of condensate at a price close to that of crude oil. The Companyanticipates that production from the field will commence in December 2008. Serica is the operator of the Kambuna Field and holds an interest of 65% in theproject. Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who has over 35years' experience in the upstream oil and gas industry, has reviewed andapproved the technical information contained in this announcement. 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 mailto:kelly@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 mailto:kelly@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