Serica Energy plc (AIM & TSX-V: SQZ) provides an update on development activities in the Kambuna field, offshore North Sumatra, Indonesia.
Serica has completed drilling the Kambuna No.4 development well. Kambuna No.4 is a deviated well drilled from the wellhead platform at the Kambuna No.2 location in the north of the field to a subsurface location 2,180 metres to the south of Kambuna No.2. It has been drilled to a total depth of 7,408 ft true vertical depth below mean sea level (“TVDSS”). The well entered the target Belumai reservoir at a depth of 7,140 ft TVDSS and encountered gas-bearing sands over an interval of 115 ft with a net pay of 107 ft (66 vertical ft). The Belumai reservoir in Kambuna No.4 was 26 ft higher than at Kambuna No.3.
This completes the drilling phase of the Kambuna development.
Over the next few weeks, initial production tests will be carried out on the three development wells and they will then be shut in while the development works continue. These works include the installation of an offshore and onshore pipeline and some onshore production processing facilities. Production is scheduled to commence at the end of this year.
Serica expects to achieve an average gas sales price close to US$6.00 per thousand cubic feet, about 10% higher than that assumed in the reserves report filed on 28 March 2008 on SEDAR at www.sedar.com. The reserves report, prepared before the results of Kambuna No.3 and No.4 were available, estimates that the field Proven plus Probable reserves, on a 100% basis, amount to 29.7 million barrels of oil equivalent.
Serica is the operator of the Kambuna Field and holds an interest of 65% in the project.
Paul Ellis MA (Oxon) Engineering and Serica’s Chief Executive, who has over 35 years’ experience in the upstream oil and gas industry, has reviewed and approved the technical information contained in this announcement.
For further information: Enquiries: Serica Energy plc, Paul Ellis, Chief Executive Officer, firstname.lastname@example.org, +44 (0)20 7487 7300; Chris Hearne, Finance Director, email@example.com, +44 (0)20 7487 7300; JPMorgan Cazenove, Steve Baldwin, firstname.lastname@example.org, +44 (0)20 7588 2828; Tristone Capital Limited, Majid Shafiq, email@example.com, +44 (0)20 7355 5872; Pelham Public Relations – UK, James Henderson, firstname.lastname@example.org, +44 (0)20 7743 6673; Alisdair Haythornthwaite, email@example.com, +44 (0)20 7743 6676; CHF – Canada, Cathy Hume, firstname.lastname@example.org, (416) 868-1079 ext.231; Sarah Gingerich, email@example.com, (416) 868-1079 ext. 238