1st Apr 2008 07:00
Serica Energy plc01 April 2008 Serica Energy plc ("Serica" or the "Company") KAMBUNA FIELD DEVELOPMENT DRILLING PROGRESSING ON SCHEDULE London, 1 April 2008 - Serica Energy plc (AIM & TSX-V: SQZ) provides an updateon development activities in the Kambuna field, offshore North Sumatra,Indonesia. The Kambuna #3 and #4 deviated development wells are being batch drilled fromthe Kambuna production platform, installed earlier this year at the location ofthe Kambuna #2 well, the first of the three planned development wells. Kambuna#3 has been drilled to a total depth of 7,483 ft true vertical depth below meansea level ("TVDSS"). The well entered the target Belumai reservoir at a depthof 7,166 ft TVDSS and encountered gas-bearing sands over an interval of 107 ftwith a net pay of 77 ft (67 vertical ft) and, as expected, there was noindication of a gas-water contact. A seven inch production liner has been set in Kambuna #3 and the well will nowbe suspended while the remaining section of Kambuna #4 is drilled. Later inApril all three development wells will be completed for production and shortproduction tests will be carried out. As previously reported in the Company's Full Year Results, an independentreserves report prepared by RPS Energy estimated that, at a 10% discount factor,the post-tax net present value to Serica of the Proved plus Probable KambunaReserves at forecast prices and costs was US$131.5 million at 31 December 2007and that at constant prices and costs the net present value was US$144.7million. Total 2P reserves, on a 100% basis, were estimated to be 29.7 millionbarrels of oil equivalent, representing a 15% year on year increase. Since the report was prepared, terms were agreed for a second tranche of gas andSerica ultimately expects to achieve an average gas price close to US$6.00 perthousand cubic feet, about 10% higher than that assumed in the reserves report.A summary of the reserves report on Form 51-101F1 was filed on 28 March 2008 onSEDAR at www.sedar.com. The Company anticipates that production from the field will commence in December2008. Serica is the operator of the Kambuna Field and holds an interest of 65%in the project. Serica CEO Paul Elis said: "We are very pleased with the positive outcome of thegas sales negotiations and the excellent contract terms which have beenachieved. With the first two Kambuna development wells successfully drilled andthe third already underway, our development plan is progressing on schedule, andwe anticipate achieving first production in December 2008." 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, [email protected] +44 (0)20 7487 7300 Chief Executive OfficerChris Hearne, [email protected] +44 (0)20 7487 7300 Finance Director JPMorgan CazenoveSteve Baldwin [email protected] +44 (0)20 7588 2828 Tristone Capital LimitedMajid Shafiq [email protected] +44 (0)20 7355 5872 Pelham Public Relations -UKJames Henderson [email protected] +44 (0)20 7743 6673Alisdair Haythornthwaite [email protected] +44 (0)20 7743 6676 CHF - CanadaSarah Gingerich [email protected] +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 [email protected] andspecify "Serica press releases" in the subject line. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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