Contact Information: Enquiries: Serica Energy plc Paul Ellis CEO +44 (0)20 7487 7300 Chris Hearne CFO +44 (0)20 7487 7300 J.P.Morgan Cazenove Steve Baldwin +44 (0)20 7588 2828 Pelham Public Relations Philip Dennis +44 (0)20 7337 1516 Andy Cornelius +44 (0)20 7337 1514
LONDON--(Marketwire - October 21, 2009) - Serica Energy plc (AIM : SQZ ) (TSX-V : SQZ ) provides
an update on the Kambuna field, offshore Sumatra, Indonesia, in which
Serica holds a 50% working interest.
After six weeks of production from the Kambuna field, commercial sales to
PLN, the Indonesian state electricity generator, were temporarily suspended
on 25 September at its request so that it could carry out necessary repairs
to its gas turbine generators.
The turbine failures were unrelated to the composition of Kambuna gas,
which was supplied well within the specifications for the export gas
pipeline. Serica understands that PLN's technical investigation into the
cause of the failures will shortly be completed, at which time it is
expected that gas and condensate sales will be resumed.
The gas sales contract with PLN provides for a contract quantity of 35
million standard cubic feet per day ("mmscfd") for the first twelve months
and it has already been demonstrated that rates in excess of this can be
delivered. Once production resumes, every effort will be made to deliver
in excess of 35 mmscfd on a best efforts basis. The buyer must pay for any
shortfall in annual gas sales of less than 90% of the contract quantity
under the "take or pay" provisions of the contract.
Further information on the Company is available on its website:
www.serica-energy.com
The technical information contained in the announcement has been reviewed
and approved by Peter Sadler, Chief Operating Officer of Serica Energy plc.
Peter Sadler is a qualified Petroleum Engineer (MSc Imperial College,
London, 1982) and has been a member of the Society of Petroleum Engineers
since 1981.
Forward Looking Statements
This disclosure contains certain forward looking statements that involve
substantial known and unknown risks and uncertainties, some of which are
beyond Serica Energy plc's control, including: the impact of general
economic conditions where Serica Energy plc operates, industry conditions,
changes in laws and regulations including the adoption of new environmental
laws and regulations and changes in how they are interpreted and enforced,
increased competition, the lack of availability of qualified personnel or
management, fluctuations in foreign exchange or interest rates, stock
market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory authorities. Serica Energy plc's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward looking statements and,
accordingly, no assurances can be given that any of the events anticipated
by the forward looking statements will transpire or occur, or if any of
them do so, what benefits, including the amount of proceeds, that Serica
Energy plc will derive therefrom.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
To receive Company news releases via email, please contact
malika.shermatova@pelhampr.com and specify "Serica press releases" in the
subject line.