15th Jun 2006 17:01
Serica Energy plc15 June 2006 FOR IMMEDIATE RELEASE: Thursday 15th June, 2006 SERICA ENERGY PLC PLANS TO DEVELOP THE KAMBUNA FIELD IN INDONESIA ("Serica" or "the Company") London, 15th June 2006 - At the Serica AGM today Antony Craven Walker, Chairman,made the following comments: "Serica made great progress in 2005, achieving one hundred per cent success withthe drill bit and a successful listing on London's AIM market, giving itinvestment community support in Europe and Canada and a strong financialposition. Serica's Board expects to give full project sanction for development of theKambuna Field, offshore North Sumatra, Indonesia in the near future. Serica isoperator of the Kambuna Field, holding a 65% interest, and this development isintegral to the Company's plan to move its operated assets in Indonesia into theproduction phase and satisfy a growing market in the region. The field isexpected to come onstream in 2008 at an initial rate of 50 million cubic feet ofgas per day and 5,000 barrels per day of condensate. The full extent of theKambuna Field has yet to be defined and the Company will carry out a 3D seismicsurvey in 2006 to identify further extensions. This is a major step forward forSerica and has the potential to be a material producing asset in the medium tolong term. As part of the development plan we intend to fast track the development of thefield using 'dry' wellheads and a Floating Production Storage and Offtake vessel("FPSO"), which offers significantly lower drilling and production costs than asubsea solution. We also plan to construct the infrastructure to deliver the gas to market, andthe terms of the gas sales contract are under negotiation. We estimate therewill be a gas market shortfall in North Sumatra of around 100 to 200 mmscfd by2010. In addition to the Kambuna field development Serica has also submitted aPlan of Development for the Tanjung Perling field in the neighbouring AsahanBlock which Serica also operates. We will continue to explore for additional gassupplies to add to the Kambuna and Tanjung Perling developments with nineprospects and leads already identified. With a high impact exploration programme across Indonesia and the UK due tocommence shortly and near term development in Indonesia on track for first gasin 2008 Serica is well placed to generate growth for shareholders." The Company is also pleased to announce that all of the resolutions set out inthe Notice of Annual General Meeting dated 21 May 2006 were duly passed, withoutamendment, at the Annual General Meeting held today. A presentation given by the management at today's AGM, outlining the developmentplan and exploration and development drilling programme commencing in the UK andIndonesia Q4 2006, is now available to view on the Company's website,www.serica-energy.com. 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". Annual Report and Accounts are available at www.serica-energy.com andwww.sedar.com. 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 ExchangeRelated Shares:
Serica Energy