Kambuna Operations Update

RNS Number : 8091Z

Serica Energy plc

29 September 2009

 



Serica Energy plc

('Serica' or the 'Company')

KAMBUNA OPERATIONS UPDATE

London, 29 September 2009 - Serica Energy plc (AIM & TSX-V: SQZ) announces that production at the Kambuna field, offshore Sumatra, Indonesia, has been temporarily suspended at the request of the gas purchaser. Serica holds a 50% working interest in the Kambuna field..

Commercial sales to PLN, the Indonesian state electricity generator, began on 11 August and reached 37.9 million standard cubic feet per day ('mmscfd') on 16 September. However, PLN has experienced problems with the gas turbines at its power station at Belawan and has requested that Kambuna production be temporarily suspended while it undertakes the required maintenance. The gas sales contract provides that future sales may be made at higher rates than contracted, in order to make up for any production lost while this maintenance is completed.

Taking account of the present shutdown, it is expected that average September sales will be 20 mmscfd of gas and 2,100 barrels/day of condensate. To date the average condensate yield has been over 100 barels per million cubic feet and the heating value of the gas has been over 1,200 Btu per cubic foot, both of which are in line with earlier forecasts.

Serica CEO Paul Ellis said: 

'Although we have had to shut in the Kambuna field just as we were about to reach the 40 mmscfd initial contract level, it has been pleasing to note the excellent performance of the wells and the onshore facilities. I am confident that when we resume production we shall soon reach our target gas and condensate rates.'

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]
Tristone Capital Limited
Majid Shafiq	[e-mail]	[phone]
Pelham Public Relations
Philip Dennis Andy Cornelius	[e-mail] [e-mail]	[phone] [phone]
CHF - Canada
Cathy Hume	[e-mail]	[phone]
Catarina Cerqueira	[e-mail]	[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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