Serica Energy bags $100m financing

UK oil, gas firm Serica Energy plc said on Wednesday it has obtained a commitment from JPMorgan Chase Bank, N.A. and The Governor and Company of the Bank of Scotland to enter into a US$100 million senior secured debt facility.

Closing of the facility is subject to legal documentation and fulfillment of standard terms and conditions for a debt financing of this nature, the company said.

The facility, which will have a term of 12 months, with the Company having an option to extend for a further 6 months, will be used to fund appraisal and development expenditures for the Kambuna field in Indonesia and the Columbus field in the UK North Sea as well as for Norwegian appraisal expenditure and general corporate purposes.

Development of the Kambuna field is now well underway with negotiations for the sale of the gas at an advanced stage, said the company.

The field lies offshore North West Sumatra and is destined to supply gas to the city of Medan. The wellhead support tower is currently under construction in Balikpapan, and is scheduled for delivery in September. In the fourth quarter of this year, the support tower will be installed and three wells will be drilled to develop and further appraise the full extent of the Kambuna field. (alex)