Serica Energy awards $5.7 million drilling contract

Canadian firm Serica Energy Corporation announced Tuesday the signing of a US$5.7 million contract with PT Lins Petrotama Energi, as the Indonesian agent for Jet Drilling (S) Pte. Ltd., covering the use of the semi-submersible drilling rig "Galaxy Driller" for a two-well drilling program in its offshore North Sumatra blocks.

Serica said the Galaxy Driller was currently undergoing an extensive re-fit and upgrade in Singapore.

?The Corporation has almost completed the process of procuring the materials and remaining services required to drill the wells, and is currently targeting a June spud date for the first well,? Serica said.

The first well in the program, Kambuna-2, will be drilled in the Glagah Kambuna Technical Assistance Contract (TAC). The Glagah Kambuna TAC (Serica's interest: 69.4118%) is located offshore North Sumatra, approximately 45 kms north of Medan, Indonesia's third largest city. Kambuna-2 will be drilled to a total depth (TD) of approximately 8,200 feet.

The second well in the program will be Togar-1, an exploration well to be drilled in the Asahan Offshore Production Sharing Contract (PSC) (Serica: 58.8235% and Operator). The Asahan Offshore PSC surrounds the Glagah Kambuna TAC on three sides. Togar-1 will be drilled to an approximate TD of 6,300 feet. (Robert)