Serica Energy plans to drill 3 wells in Indonesia in 2006

Toronto-based oil, gas firm Serica Energy said on Wednesday it planned to drill at least three wells on its operated Indonesian properties in 2006 with budget of around US$30 million.

The wells are an appraisal well on the Kambuna Field; an exploration well in the Asahan Block, to further evaluate the potential of the block following the recent Togar-1A gas discovery; and first exploration well in the Biliton Block.

Following the recent success of the Kambuna-2 appraisal well in Glagah Kambuna TAC offshore North Sumatra, Serica said it intended to submit a preliminary plan of development for the field before the year-end. Kambuna-2 flowed 17.5 MMCFD of gas together with over 1,500 barrels per day condensate in October. The plan will include a further appraisal well and the acquisition of a 3D seismic survey in 2006. The company has also provisionally allocated a further US$20 million for expenditure on the Kambuna development over 2006 and 2007.

Serica said it was evaluating a number of other prospects in the Asahan PSC Block, also located offshore North Sumatra for early drilling. The company discovered un-commercial gas in good reservoir sands in the Togar-1A exploration well last month. The company plans to drill a further exploration well in 2006.

The company also planned to commence drilling on the Biliton Block in Java Sea in which it had defined a number of untested prospects in 2006 and one well in the following year.

Serica is the operator in the three blocks. (alex)