Serica updates Indonesian ops
Monday, May 16 2011 - 05:27 PM WIB
(The following is an excerpt taken from Seriac Energy?s 1st quarter report released on Monday. (ed))
Serica's interests in Indonesia are subject to a strategic review which may result in a sale of the properties. During the first quarter of 2011 the Company invited proposals from interested parties with a view to the possible disposal of its Indonesian properties. Although no decision has yet been taken, these discussions are at an advanced stage and may lead to a sale.
North Sumatra: Glagah Kambuna TAC - Kambuna Field
The Glagah Kambuna TAC, containing the producing Kambuna gas field, covers an area of approximately 380 square kilometres and lies offshore North Sumatra. Serica holds an interest of 25% in the TAC. An independent reserves report by RPS Energy, undertaken at the end of 2010, estimated gross remaining proved and probable reserves in the Kambuna field as 28.1 bcf of sales gas and 2.3 mmbbl of condensate, a total of 8.2 mmboe as at 1 January 2011.
The Kambuna gas is used for power generation to supply electricity to the city of Medan in North Sumatra and for industrial uses. During the first quarter of 2011 gross production from the field amounted to 3.6 bcf of sales gas and 265,000 bbls of condensate. The average gas sales price realised was US$6.11 per mcf with condensate realising an average price of US$110.7 per barrel. The highest price achieved during 2011 to date is US$116.6 per barrel, achieved in March.
A well is planned to be drilled from the Kambuna platform during the second half of 2011 to exploit the gas bearing potential of a likely northern extension of the field. This activity plus the planned installation of gas compression is intended to support the productive capacity of the field.
North Sumatra: East Seruway PSC
Serica holds a 100% interest in the East Seruway Production Sharing Contract ("PSC") offshore North Sumatra, Indonesia. The PSC, which lies adjacent to the Glagah Kambuna TAC, covers an area of approximately 5,864 square kilometres and is largely unexplored.
Following completion of the acquisition of 2,100 line kilometres of 2D seismic data in the PSC in 2010 the Company has identified a number of leads which will require further delineation before making a drilling decision. The Company will need the consent of both the Indonesian authorities and the semi-autonomous province of Aceh in order to undertake work in certain parts of the PSC.
East Kalimantan: Kutai PSC
Serica is the operator of the Kutai PSC and holds a 30% interest. The PSC is divided into five blocks located in the Mahakam River delta both onshore and offshore East Kalimantan.
The Company drilled two wells, Marindan and Dambus, in 2010. Both wells encountered hydrocarbons but in insufficient quantities to support standalone development. In the light of the Dambus result other prospects and leads in the area around the Dambus well are under review. Gas discovered at Dambus would reduce the threshold volume required for the development of any further resources that may be discovered in the immediate area. (end of the exceprt)