Serica expects to get high price for its N. Sumatra gas

London stock Exchange-listed oil and gas firm Serica Energy plc estimates its gas and condensate from Kambuna field in Glagah-Kambuna TAC offshore North Sumatra could get price higher than US$4.8 per MCF and Brent Crude +/- US$2 per barrel, respectively.

The $4.8 per MCF price, if realized, would be the highest domestic gas price ever.

The company revealed in its Thursday presentation that it would start producing gas and condensate in the second half of 2008, initially at 50MMCFD and 5,000 BPD of condensate.

Gross probable gas-condensate reserves at Glagah-Kambuna TAC are estimated to be around 25.7 million BOE.

The company is reportedly negotiating with a number of potential buyers including state oil and gas firm Pertamina and state gas distribution firm PGN to pipe gas to North Sumatra, which is currently experiencing acute gas shortage.

The company said facilities at Kambuna field will be for the sixe of 100 MMCFD and 10,000 BCPD to allow for upside cases.

The company?s Chairman Tony Walker said Serica is expecting to be able to raise banks facilities to meet the cost of developing Kambuna field.

Serica is the operator of Glagah-Kambuna TAC with 65 percent interest. The remaining interest is held by Calgary-based firm GFI Oil and Gas Corporation. (alex)