Serica Energy shares operational highlights

Serica Energy Plc. has published financial results for the three and six months ended June 30, 2007.

Offshore staff

LONDON -- Serica Energy Plc. has published financial results for the three and six months ended June 30, 2007.

The company is constructing the Kambuna gas/condensate field facilities offshore northwest Sumatra, Indonesia, with plans to begin production in 2008. The company says development on the Glagah-Kambuna PSC is well under way. Negotiations for the sale of the gas and condensate are expected to conclude shortly, with the field destined to supply gas to Medan, Indonesia's third largest city. The field wellhead support tower is under construction in Balikpapan, Indonesia, and is scheduled for delivery in September. Installation is scheduled for 4Q 2007. Two new development wells will be drilled from the tower, and the Kambuna #2 well will be re-completed to develop the Kambuna field. Later this year, the offshore and onshore pipeline route surveys will be carried out in preparation for issuing invitations to tender for pipeline supply and installation.

In March, Serica announced the farm-out of a percentage of its interest in the Biliton PSC. Under the terms of the agreement and subject to regulatory approval, Serica will assign 45% interest in the Biliton PSC to Nations Petroleum Co. Ltd., which will bear the majority of the costs of the two-well exploration drilling program, scheduled to begin in 4Q 2007. Serica will remain the operator and will retain a 45% interest. The two prospects to be drilled are in an unexplored basin in the central Java Sea.

In the large Kutai PSC, East Kalimantan, an elevation survey has been completed in preparation for a 2D seismic survey to be carried out in the onshore part of the PSC early next year. The existing offshore 3D seismic survey data is to be reprocessed. Plans for an additional 3D seismic survey are being prepared.

Serica also holds 33.3% interest in block 06/94 PSC in the Con Son basin offshore Vietnam. The block lies immediately south of the producing Lan Tay and Lan Do gas fields, and immediately east of the Dua and Blackbird oil discoveries. Several prospects have been identified on the block, and a new 3D seismic survey is expected to begin in 3Q 2007.

Serica plans to carry out extensive drilling in the second half of the year, with two exploration wells and four appraisal or development wells planned, the company says.


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