UK’s Serica Energy explores sale of Indonesian assets

11-Nov-2010 Intellasia | Reuters Africa | 3:13 PM

Serica Energy Plc (SQZ.L: Quote) (SQZ.TO: Quote) said it was looking at strategic options for its Indonesian assets, including a possible sale, sending the British oil and gas explorer’s shares up as much as 20 percent.

Serica will consider a range of options, including selling all or part of its Indonesian operations or exchange its output from Indonesia for UK or Western European production.

“For some time we have been concerned that the underlying value of our Indonesian business has not been fully recognised and the board has therefore decided to review the alternatives,” Chief Executive Paul Ellis said in a statement.

London-based Serica, which holds exploration and production licences in the UK North Sea and East Irish Sea, Ireland, Morocco and Indonesia, said it saw more growth opportunities outside Indonesia and expects to conclude the review early next year.

Jefferies International Ltd is acting as financial adviser for Serica for the strategic review.

Last week, the company said it generated a gross profit of $5.4 million in the third quarter from its key Kambuna field in Indonesia, where it holds a 25 percent interest.

Serica’s shares, which have lost more than half their value since the company abandoned a well in the East Irish Sea on May 27, were up 6.7 percent to 44 pence at 1521 GMT on the London Stock Exchange. They touched a high of 49.7 pence earlier in the session.

http://af.reuters.com/article/energyOilNews/idAFSGE6A80O520101109