Serica Energy Regulatory News (SQZ)

13 Jun 2006 13:00

Serica Energy plc13 June 2006 FOR IMMEDIATE RELEASE: Tuesday 13th June, 2006 SERICA ENERGY PLC ANNOUNCES SALE OF LEMATANG INTEREST London, 13th June 2006 - Serica Energy plc (TSX Venture: SQZ; AIM: SQZ)announces that it has concluded an agreement for the sale of its 10% interest inthe Lematang Production Sharing Contract, onshore south Sumatra, to LundinPetroleum AB ("Lundin Petroleum") for US$5 million in cash subject to therequired partner and Indonesian government approvals. The block includes thenearly depleted Harimau gas field and the Singa gas field development project.As at 31 December 2005 the net book value of the assets disposed of was US$2.4million, with attributable turnover and profit for the year ended 31 December2005 of US$0.1 million. Paul Ellis, Chief Executive, commented: "Given our focus on the development of Serica's operated Kambuna and TanjungPerling fields offshore Sumatra, Lematang was no longer a core asset due to thesmall level of working interest that we held. Following the disposal of thisinterest Serica also holds operatorship of all its assets in Indonesia, the UKNorth Sea and Spain. The proceeds from this sale will be deployed effectivelyin other parts of Serica's portfolio, such as the Kambuna Field, which is due tocome on stream in 2008, and where we recently increased our holding from 55% to65%." Enquiries: Serica Energy plcPaul Ellis, pellis@serica-energy.com +44 (0)20 7487 7300 Chief Executive OfficerChris Hearne, chearne@serica-energy.com +44 (0)20 7487 7300 Finance 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 1079Heather Colpitts heather@chfir.com +1 416 868 1079 Background Notes Serica Energy plc is an international oil and gas exploration company withoperations in Indonesia, the UK North Sea and Spain. The Company's ordinaryshares are listed in London on AIM and on the Canadian TSX Venture Exchangeunder the symbol "SQZ". The 2005 Annual Report and Accounts are available atwww.serica-energy.com and www.sedar.com. The Annual General Meeting will beheld in London on 15th June 2006. Lundin Petroleum AB is an independent Swedish oil and gas exploration andproduction company with assets in Albania, France, Indonesia, Iran, Ireland,Netherlands, Nigeria, Norway, Sudan, Tunisia, United Kingdom and Venezuela.Lundin has an existing 15.88% stake in the Lematang PSC. 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