Vietnam Farm-out and Operational update
SERICA ENERGY ANNOUNCES VIETNAM FARM-OUT
AND OPERATIONAL UPDATE
London, 23 March 2009 - Serica Energy plc (AIM & TSX-V: SQZ) ('Serica' or 'the Company') announces that it has agreed the terms of a farm-out of part of its interest in Block 06/94 offshore Vietnam and provides an operational update of its activities in Indonesia, where production is expected in the second quarter, and in Ireland where drilling is expected to commence in May.
Vietnam Farm-Out
Serica has reached agreement with Australian Worldwide Exploration Limited ('AWE') on the terms of a farm-out of part of Serica's interest in the Block 06/94 Production Sharing Contract offshore Vietnam ('the PSC'). The agreement is subject to the waiver of a pre-emptive right held by PetroVietnam, the Vietnamese State oil and gas company, and to the approval of the government of Vietnam.
Under the agreement, AWE will bear Serica's 33.33% share of the costs of the three well drilling programme in the PSC, subject to a financial cap, in order to earn an interest of 23.33% in the PSC, with Serica retaining a 10% interest.
The Ocean General drilling rig is expected to arrive on location in Block 06/94 for the Tuong Vi exploration well in June 2009. The second and third exploration wells on the block are not expected to be drilled until 2010.
Operational Update
Indonesia: In the Kambuna field development (Serica 50%), the 58 kilometre offshore and onshore pipeline has been laid and tested. The offshore platform topsides were successfully installed this month and offshore hook-up and commissioning are in progress. Work continues with the construction of the onshore gas reception facility and first gas is scheduled for June 2009. In the Kutai PSC (Serica 54.6%), offshore and onshore East Kalimantan, the 280 kilometre onshore 2D seismic survey is being recorded.
Ireland: Serica expects shortly to secure a drilling rig to drill the Bandon exploration prospect off the west coast of Ireland in Licence PEL 01/06 with drilling planned to commence in May. This gas prospect has a potential resource range of 230 billion cubic feet to 1.7 trillion cubic feet. Serica's costs on this well will be largely carried by RWE-DEA, which is farming in to earn a 50% interest in the Licence, with Serica remaining operator and retaining 50%.
Paul Ellis, Serica's Chief Executive Officer, said:
'Serica continues to make strong progress on a number of fronts with development of the Kambuna field in Indonesia now well on course for first gas production in the second quarter of this year. The successful farm-outs in both Ireland and Vietnam enable the Company to retain material upside to the near-term drilling programme in these two highly prospective blocks whilst substantially reducing the costs'.
Further information regarding Serica's interests can be found on Serica's web-site at www.serica-energy.com
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.
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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Philip Dennis |
philip.dennis@pelhampr.com |
+44 (0)20 7337 1516 |
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Andy Cornelius |
andy.cornelius@pelhampr.com |
+44 (0)20 7337 1514 |
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CHF - Canada |
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Sasha Abrams |
sasha@chfir.com |
+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.
This information is provided by RNS
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