Serica to carry out drilling operations at three Indonesian blocks

Canadian oil company Serica Energy Corporation said Friday it had signed a two-well Letter of Intent with PT Lins Petrotama Energi to rent the semi-submersible drilling rig Galaxy Driller for the drilling of first two wells on the offshore Asahan and Glagah/Kambuna blocks.

The Asahan PSC is located in the Malacca Strait offshore North Sumatra, approximately 50 kilometers from Medan city. The PSC covers an area in excess of 3197 km? and has a two-year exploration term remaining. The PSC contains one delineated and tested gas/condensate discovery (NSO-1/Tanjung Perling).

The operating venture in Asahan block consists of Serica through APD (Asahan) Ltd (20 percent and operator), Asahan Oil Investments BV (38.823 percent), EEX Asahan Ltd (Medco) (15 percent), Jagen Asahan Pty Ltd (12.132 percent), PR Risjad Salim Resources Asahan (10 percent) and Greevest Asahan Pty Ltd (4.045 percent).

Meanwhile, the Glagah Kambuna TAC lies immediately adjacent to the Asahan Offshore PSC. It contains within it two undeveloped discoveries, one of which, the Kambuna field, will be further appraised. Serica is the operator and holds a 69 percent interest that will increase to 80 percent after the drilling of the first well. The TAC has a guaranteed 15 year production term.

Elsewhere Serica said it was also reviewing the possibility of commencing drilling on the Biliton block later in the year.

The Biliton PSC, covers an area of approximately 6,575 km? and lies 350 kilometres northwest of the island of Java, was awarded on 28 December 2003 to a private Indonesian company, PT Mitra Energy.

Under the terms of an existing Participation Agreement, PT Mitra Energy Development is now be partnered in the PSC by Serica via APD (Biliton) Ltd. The PSC is currently operated by Serica with a 90 percent interest while PT Mitra Energy Development holds the remaining 10 percent. (Robert)