Serica Energy Regulatory News (SQZ)

25 Apr 2008 07:00

Serica Energy plc25 April 2008 Serica Energy plc ("Serica" or the "Company") KAMBUNA FIELD DEVELOPMENT WELLS COMPLETED London, 25 April 2008 - Serica Energy plc (AIM & TSX-V: SQZ) provides an updateon development activities in the Kambuna field, offshore North Sumatra,Indonesia. Serica has completed drilling the Kambuna #4 development well. Kambuna #4 is adeviated well drilled from the wellhead platform at the Kambuna #2 location inthe north of the field to a subsurface location 2,180 metres to the south ofKambuna #2. It has been drilled to a total depth of 7,408 ft true verticaldepth below mean sea level ("TVDSS"). The well entered the target Belumaireservoir at a depth of 7,140 ft TVDSS and encountered gas-bearing sands over aninterval of 115 ft with a net pay of 107 ft (66 vertical ft). The Belumaireservoir in Kambuna #4 was 26 ft higher than at Kambuna #3. This completes the drilling phase of the Kambuna development. Over the next fewweeks, initial production tests will be carried out on the three developmentwells and they will then be shut in while the development works continue. Theseworks include the installation of an offshore and onshore pipeline and someonshore production processing facilities. Production is scheduled to commenceat the end of this year. Serica expects to achieve an average gas sales price close to US$6.00 perthousand cubic feet, about 10% higher than that assumed in the reserves reportfiled on 28 March 2008 on SEDAR at www.sedar.com. The reserves report, preparedbefore the results of Kambuna #3 and #4 were available, estimates that the fieldProven plus Probable reserves, on a 100% basis, amount to 29.7 million barrelsof oil equivalent. 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 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