Kambuna Operation Restarts

RNS Number : 1659C

Serica Energy plc

09 November 2009

 



Serica Energy plc

("Serica" or the "Company")

KAMBUNA PRODUCTION RESTARTS

London, 9 November 2009 - Serica Energy plc (AIM & TSX-V: SQZ) is pleased to announce that production has recommenced from the Kambuna field, offshore Sumatra, Indonesia, in which Serica holds a 50% working interest.

Production from the Kambuna field was temporarily suspended on 25 September at the request of the gas buyer, the Indonesian state electricity generation company PLN, so that it could carry out necessary repairs to its gas turbine generators. Repairs have been carried out and production from the field restarted on 7 November at an initial rate of 10 million standard cubic feet ("mmscf") per day. Resumption of gas sales also allows condensate sales to restart. The Kambuna field produces approximately 100 barrels of condensate per mmscf of gas.

The gas sales contract with PLN provides for a contract quantity of 35 mmscf/day for the first twelve months and it has already been demonstrated that rates in excess of this can be delivered. Once full production is reached, every effort will be made to deliver in excess of 35 mmscf/day to PLN. Sales of 12 mmscf/day to the second buyer are expected to commence in January 2010 plus a further 4-5 mmscf/day of sales for LPG production.

Further information on the Company is available on its website: www.serica-energy.com

Enquiries:

Serica Energy plc
Paul Ellis, CEO	[e-mail]	[phone]
Chris Hearne, CFO	[e-mail]	[phone]
J.P.Morgan Cazenove
Steve Baldwin	[e-mail]	[phone]
Pelham Public Relations
Philip Dennis Andy Cornelius	[e-mail] [e-mail]	[phone] [phone]

The technical information contained in the announcement has been reviewed and approved by Peter Sadler, Chief Operating Officer of Serica Energy plc. Peter Sadler is a qualified Petroleum Engineer (MSc Imperial College, London, 1982) and has been a member of the Society of Petroleum Engineers since 1981. 

Forward Looking Statements

This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond Serica Energy plc's control, including: the impact of general economic conditions where Serica Energy plc operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Serica Energy plc's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Serica Energy plc will derive therefrom.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To receive Company news releases via email, please contact [e-mail] and specify "Serica press releases" in the subject line.

 

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