Serica completes Kambuna field development wells

UK oil, gas firm Serica Energy plc reported Friday it has completed drilling the Kambuna No.4 development well in the Kambuna field, Glagah-Kambuna TAC, offshore North Sumatra.

Kambuna No.4 is a deviated well drilled from the wellhead platform at the Kambuna No.2 location in the north of the field to a subsurface location 2,180 metres to the south of Kambuna No.2. It has been drilled to a total depth of 7,408 ft true vertical depth below mean sea level (TVDSS). The well entered the target Belumai reservoir at a depth of 7,140 ft TVDSS and encountered gas-bearing sands over an interval of 115 ft with a net pay of 107 ft (66 vertical ft). The Belumai reservoir in Kambuna No.4 was 26 ft higher than at Kambuna No.3.

"This completes the drilling phase of the Kambuna development. Over the next few weeks, initial production tests will be carried out on the three development wells and they will then be shut in while the development works continue. These works include the installation of an offshore and onshore pipeline and some onshore production processing facilities. Production is scheduled to commence at the end of this year," the company said.

The Kambuna development wells are expected to produce at a total rate of 50 mmscfd, delivered at Pangkalan Brandan, about eight kilometres onshore and the site of a Pertamina gas plant and refinery. In addition to the gas, Serica will initially be marketing 4,000-5,000 barrels per day of condensate

Serica expects to achieve an average gas sales price close to US$6.00 per thousand cubic feet, about 10% higher than that earlier assumed in the reserves report filed on 28 March 2008. The reserves report, prepared before the results of Kambuna No.3 and No.4 were available, estimates that the field Proven plus Probable reserves, on a 100% basis, amount to 29.7 million barrels of oil equivalent.

Serica is the operator of the Kambuna Field and holds an interest of 65% in the project.(denny)