Serica to use Lematang deal proceeds to develop N. Sumatra gas fields

Canadian firm Serica Energy plc said Tuesday it would use the US$5 million proceeds from the sales of its interest in Lematang block onshore South Sumatra to finance projects such as the Kambuna field offshore North Sumatra, which is due to come on stream in 2008.

?Given our focus on the development of Serica?s operated Kambuna and Tanjung Perling fields offshore Sumatra, Lematang was no longer a core asset due to the small level of working interest that we held,? Serica said.

According to Serica, the Lematang block includes the nearly depleted Harimau gas field and the Singa gas field development project. As at 31 December 2005 the net book value of the assets disposed of was US$2.4 million, with attributable turnover and profit for the year ended 31 December 2005 of US$0.1 million.

Serica has received approval for its plan of development (PoD) for the Kambuna field of the Glagah Kambuna TAC. The company has said that it was in talks with state oil and gas company Pertamina and state gas distribution firm PGN over the gas sale to PLN?s power plant in Belawan, North Sumatra.

Meanwhile, the Tanjung Perling field of Asahan Offshore PSC is located adjacent to the Glagah block. Serica is proposing a PoD for the field as the 2005 seismic program indicating that the field is of commercial size. (Robert)