Serica Energy Begins Drilling Kambuna-2 Offshore Indonesia

Serica Energy has started drilling the Kambuna-2 well offshore North Sumatra, the first well in a two-well program.

Kambuna-1, the field discovery well, flowed gas at 13.9 million standard cubic feet per day (MMscf/d), along with 950 bbls/day of condensate, from an open-hole test over a 100-ft interval in the Belumai sandstone. Kambuna-2 will be drilled to a total depth of approximately 8,200 feet. The Galaxy Driller is drilling Kambuna-2 in the Glagah Kambuna Technical Assistance Contract (TAC). Serica is operator and holds a 55% interest in the Glagah Kambuna TAC, located approximately 45 kms north of Medan, Indonesia's third largest city.

Serica CEO Paul Ellis said, "the start of drilling operations is a very significant event for Serica since it is the first well that we have drilled as operator and marks the start of a new phase in the development of the Company. Our staff has made extraordinary efforts to get to this point and we look forward to a successful result at Kambuna-2."

The second well in the program to be drilled by the Galaxy Driller will be Togar-1, an exploration well to be drilled in the Asahan Offshore Production Sharing Contract (PSC), where Serica is the operator and also holds a 55% interest.

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