Serica updates Southeast Asia

Offshore staff

LONDON -- Serica Energy Plc. has contracted the GlobalSantaFe GSF 136 to drill two wildcat, high-impact, exploration wells on the Biliton production-sharing contract (PSC) in an unexplored basin in the central Java Sea offshore Indonesia. Drilling is to begin in Q4 2007.

Serica will operate the wells and retains a 45% interest following a farmout to Nations Petroleum Company Ltd., which will bear the majority of the cost of the drilling program.

In the Glagah-Kambuna PSC offshore Northwest Sumatra, the company's development program for the Kambuna gas/condensate field is well underway, with first production expected at the end of 2008. The field wellhead support tower has been built and will be installed in Q4 2007. Two development wells will be drilled from the tower, and the Kambuna #2 well will be recompleted. In addition, offshore and onshore pipeline route surveys will be carried out in preparation for the tender for pipeline supply and installation. Negotiations for the sale of the gas and condensate are expected to conclude shortly.

Offshore Vietnam, Serica has acquired 780 sq km (sq mi) of 3D seismic data over block 06/94 in the Con Son basin, in which Serica holds 33.3% interest. 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.

"Serica is set for an extremely active period of exploration, appraisal and development drilling with operations on six wells in the UK North Sea and Indonesia over the next six months," says Paul Ellis, Serica chief executive. "In addition, seismic surveys are being conducted in Spain and Vietnam, whilst preparations for 2008 drilling in Norway and in the UK Southern Gas basin are also under way."

9/25/2007