Kambuna Production Testing Up
Serica Energy plc
('Serica' or the 'Company')
KAMBUNA WELL CAPACITY IS 114 MILLION CUBIC FEET PER DAY
London, 9 June 2008 - Serica Energy plc (AIM & TSX-V: SQZ) today provides an update on development activities in the Kambuna field, offshore North Sumatra, Indonesia, following completion of the production testing programme.
All three Kambuna production wells have now been tested. The final well, the Kambuna-4 production well, tested the Belumai reservoir over the 56 ft interval 7,154 to 7,210 ft true vertical depth below mean sea level and produced gas at a stabilised rate of approximately 41 million standard cubic feet per day (mmscfd) together with approximately 2,900 barrels per day of 54 degrees API condensate. The flowing wellhead pressure during this test was 1,444 pounds per square inch. The Kambuna-4 well was drilled as a deviated well from the surface location of Kambuna-2 and reached a maximum deviation angle of 55 degrees from the vertical.
As previously reported, the Kambuna-2 production well was tested at a stabilised rate of 33 mmscfd and the Kambuna-3 well was tested at a stabilised rate of 40 mmscfd. The total maximum stabilised gas rate from the three wells was 114 mmscfd, together with an estimated 8,000 bpd of condensate.
Serica is the operator of the Kambuna Field and holds an interest of 65% in the project.
Serica CEO Paul Ellis said: 'We have now finished the completion and testing of all three Kambuna production wells and have achieved a combined stabilised gas rate of 114 mmscfd, which is considerably higher than we had expected, exceeding our initial sales gas target of 50 mmscfd by a significant margin. We shall be updating our Kambuna field reservoir model to investigate whether increased sales volumes can be justified, particularly given the strong gas prices now being realised for domestic gas sales.'
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.
Enquiries:
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Serica Energy plc |
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Paul Ellis, Chief Executive Officer |
+44 (0)20 7487 7300 |
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Chris Hearne, Finance Director |
+44 (0)20 7487 7300 |
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JPMorgan Cazenove |
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Steve Baldwin |
steve.baldwin@jpmorgancazenove.com |
+44 (0)20 7588 2828 |
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Tristone Capital Limited |
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Majid Shafiq |
+44 (0)20 7355 5872 |
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Pelham Public Relations -UK |
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James Henderson |
+44 (0)20 7743 6673 |
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Alisdair Haythornthwaite |
+44 (0)20 7743 6676 |
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CHF - Canada |
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Sasha Abrams |
+1 416 868 1079 |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
To receive Company news releases via email, please contact sasha@chfir.com and specify 'Serica press releases' in the subject line.
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