Serica sees delay in Indonesian assets sale

UK oil, gas firm Serica Energy Plc reported on Wednesday the delay in Indonesian assets sale as the buyers have yet been able to complete fund raising in time and is opening door for other possible buyers.

The company announced on 30 June 2011 that it had accepted an offer from Pace Petroleum, a new company formed to invest in South East Asia oil and gas, under which Pace plans to acquire Serica's subsidiary group of companies which hold its Indonesian business.

The funding for this transaction is to be provided by a new resources fund being finalised by GEMS , an Asian Private Equity Group based in Hong Kong . Advice was received at the time of the announcement from GEMS that they expected completion of their fundraising in July and the transaction to complete expeditiously thereafter.

?As of 8 August 2011 the Serica has received updated advice from GEMS that the fundraising has not completed in accordance with this timetable but is anticipated to do so after a further short delay. In the light of current market conditions which introduce further uncertainty, and the possibility of the GEMS financing not completing in an acceptable time-frame, the company is continuing to hold discussions with other parties who have made alternative proposals,? it said.

The proposed sale to Pace, which is subject to final approvals by both GEMS and Serica's Board, comprises the companies which hold the Company's 25% interest in the Kambuna field offshore North Sumatra, its 30% interest in the Kutai exploration block offshore East Kalimantan and its 100% interest in the East Seruway block offshore North Sumatra.

Under the deal, Serica would receive US$33 million adjusted for working capital plus a deferred payment of US$2 million, contingent on the outcome of the Kambuna #5 well planned for drilling later this year.(romel)