Serica sells part of interest in Indonesian blocks to Salamander

UK oil, gas firm Serica Energy plc announced Thursday it has reached agreement with Salamander Energy plc for the sale of a 15% interest in the Glagah-Kambuna Technical Assistance Contract and a 23.4% interest in the Kutai Production Sharing Contract to a subsidiary of Salamander.

Salamander will pay US$52.75 million for the transaction. Completion is subject to the required government and partner consents.

The Kambuna TAC, located 40 kilometres offshore northern Sumatra, contains the Kambuna gas condensate field in which Serica and Salamander currently hold interests of 65% and 35% respectively. First gas from the Kambuna field is expected to be produced by the end of 2008 with production from the field expected to reach the planned field plateau production rate of 50 million cubic feet per day of gas plus 4,000 to 5,000 barrels per day of condensate after fully commissioning the onshore facilities early in 2009. After completion of the transaction Serica will hold an interest of 50% in the Kambuna TAC.

The Kutai PSC, located onshore and offshore East Kalimantan, Indonesia, is an early stage exploration block operated by Serica with a present interest of 78%. Both 2D and 3D seismic surveys are planned this year in preparation for the commencement of exploratory drilling in 2009. After completion of the transaction Serica will hold an interest of 54.6% in the Kutai PSC. (alex)