Serica fails to make commercial find in Kutai PSC

UK oil, gas firm Serica Energy plc reported on Thursday that the drilling of the Marindan-1 exploration well in the Kutai PSC, offshore East Kalimantan failed to discovered hydrocarbon of commercial volume.

Serica and its partners spudded the Marindan-1 offshore exploration well on 27 October 2010 using the jack-up drilling rig Trident IX and was drilled as a deviated well and on 2 December reached total depth of 3,469 metres measured depth.

High gas readings and oil shows were recorded in the interval 2,670-3,260 metres MD and downhole logs indicate thin hydrocarbon bearing sand and carbonate reservoirs, but the indicated volume of hydrocarbons present is not expected to be sufficient to justify commercial development and the well will be plugged and abandoned, the company said.

"Serica has now discovered hydrocarbons both at Marindan and Dambus, but the accumulations found in the wells are not sufficient to support standalone development at this stage. A review of options for the possible development of these discoveries together with other undrilled prospects in the Kutai PSC is underway. As previously announced, Serica is undertaking a strategic review of its Indonesian assets and this will be concluded early in the New Year," CEO Paul Ellis said.

Serica is operator of the Kutai PSC and holds a 30% interest. (alex)