N. Sumatra gas field interest is up for sale

LSE-listed oil, gas company Serica Energy plc plans to sell its 25 percent interest in Glagah ?Kambuna TAC producing block offshore North Sumatra as it is no longer considered to be core to its forward strategy.

During the third quarter of 2011, the Glagah-Kambuna field produced at an average rate of 36.4 mmscfd and 2,342 BPD of condensate. Average prices realised during the quarter for gas and condensate sales respectively were US$6.1 per mcf and $116.9 per barrel. Average production rates for the nine months to the end of September were 38.6 mmscfd of gas and 2,658 bpd of condensate.

The Kambuna gas is used for power generation to supply electricity to the city of Medan in North Sumatra and for industrial uses.

Following the reserve revision at the end of 2010 the field has now commenced its anticipated natural decline and production rates are expected to fall in line with reservoir pressure depletion. Compression facilities will be installed to enhance the production capacity of the field and the field operator is reviewing options to drill an additional well, Kambuna #5, to exploit the gas bearing potential of a likely northern extension of the field.

The plan to sell interest in Glagah-Kambuna TAC is part of the company?s move to entirely quit Indonesia to focus on other areas where it sees greater opportunity and potential

On 11 October 2011, Serica announced the sale of its Indonesian exploration properties to Kris Energy Limited, which consisted of an operated 30% interest in the Kutai PSC onshore and offshore East Kalimantan, an operated 100% interest in the East Seruway PSC offshore North-West Sumatra, and rights relating to certain Indonesian Joint Study Areas. (alex)