Serica Energy Posts Strong Second Quarter Results
Serica Energy plc announced its financial results for the three months ending June 30, 2008. The results and associated Management Discussion and Analysis are included below.
Significant progress has been achieved with the Kambuna development in Indonesia. Heads of agreement for gas contracts were formally signed in May, and Kambuna 2, 3 & 4 production wells were completed and flow tested. The wells exceeded the initial sales gas target of 50 million standard cubic feet per day (mmscfd) by a significant margin. Total maximum stabilized gas rate for the 3 wells was 114 mmscfd and an estimated 8,000 bpd of condensate. First production is on track for the end of 2008.
Serica has acquired new 3D seismic survey for the Columbus field in the UK North Sea, and a site survey of Chablis has been completed in preparation for drilling.
An agreement was reached with Spring Energy Norway AS in June for the sale of Serica's Norwegian subsidiary, Serica Energy Norge.
After the period end, an agreement was reached for the sale of a 15% interest in the Kambuna TAC and a 23.4% interest the Kutai PSC to Salamander Energy for a total consideration of US$52.75 million.
"Over the next 18 months Serica is planning a major exploration, appraisal and development program, focusing resources on existing projects where we see high potential to improve shareholder value," said CEO Paul Ellis. "With US$52.75 million available on completion of the Indonesian transaction in addition to the cash of US$42.2 million as at 30 June 2008, Serica is well placed to achieve this program and to identify new opportunities to enhance and accelerate shareholder value."
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