Serica sells Indonesian exploration interest
Wednesday, October 12 2011 - 12:53 AM WIB
Serica Indonesia Holdings BV holds Serica's Indonesian operating subsidiaries and the following exploration properties which includes an operated 30% interest in the Kutai PSC onshore and offshore East Kalimantan, an operated 100% interest in the East Seruway PSC offshore North-West Sumatra, and rights relating to certain Indonesian Joint Study Areas
Serica's 25% interest in the producing Kambuna gas field offshore North Sumatra is not included in the sale.
As a result of the transaction Kris Energy has taken over all responsibility of Serica's operating team in Jakarta and has paid US$3.14 million to Serica and reimbursed a further $0.3 million of expenditures, the company said. A further deferred payment of up to $1.5 million becomes payable to Serica in the event of future awards of licence interests in the Joint Study Areas to Kris Energy.
In June 2011, Serica announced that it had reached conditional agreement with Pace Petroleum to sell its entire interests in Indonesia to Pace, including its interest in the Kambuna field, for $33 million.
The transaction with Pace Petroleum was subject to funding to be provided by G EMS , an Asian Private Equity Group based in Hong Kong .
The company said that GEMS and Pace have failed to complete the transaction, which caused the company to accept alternative proposal to realise the value of its Indonesian properties.
?The sale of the Company's exploration properties to Kris Energy Limited will enable Serica to redirect expenditure which it would otherwise have incurred in those properties and substantially reduce its overhead costs,? the company said.
The company will continue to hold its interest in the producing Kambuna field for the time being. At an average daily gross production rate of approximately 10,900 boepd since the start of the year up to the end of August 2011 the field has produced at daily average rates of some 10 mmscfd of gas and 680 bpd of condensate to Serica's account during the period. Kambuna gas is currently sold at a price of $6.17 per mcf and condensate sales prices since the start of the year have averaged $116.42 per barrel.(alex)