Serica Posts Third Quarter Results

Serica Energy announced its financial results for the third quarter of 2008.


  • Sale of 15% of the Glagah Kambuna TAC, retaining 50% interest
  • Awarded the highly prospective East Seruway PSC in Indonesia
  • Awarded three new licences in the UK 25th Licensing Round
  • Sale of non core business in Norway - retaining interest in the upside

Financial & Corporate

  • US$52.7 million proceeds of Kambuna sale
  • US$36.6 million profit on Kambuna sale
  • US$33.5 million profit for the quarter (US$1.2 million Q3 2007)
  • US$74.4 million cash position, as of 30 September 2008
  • US$100 million debt facility for Kambuna development - US$34 million drawn
  • Peter Sadler joins the Serica board as Chief Operating Officer
  • Unsolicited all-share proposed offer unanimously rejected by the Board as under-valuing the Company, and subsequently withdrawn

Forward Programs

South East Asia

  • Kambuna development continues - production due end 1Q09
  • Kutai offshore 3D seismic completed and onshore 2D seismic underway
  • Vietnam drilling planned to start in April 2009


  • Progress on field development continues following the submission of the Columbus Field Development Plan
  • Chablis appraisal drilling to commence shortly - farm-out completed
  • Farm-out also agreed for drilling the Bandon prospect in Ireland in 2009

"The third quarter was an extremely successful period for Serica, despite the market turmoil, with the company achieving a substantial profit on the sale of a small part of its interest in the Kambuna field and making clear progress on a number of operational fronts," said Paul Ellis, Chief Executive of Serica Energy. "The Company is well positioned financially to meet our 2009 drilling and development programme and the prospects for the Company remain very positive. We believe that we are well placed to unlock the significant potential of our exploration prospects as well as to take advantage of opportunities to build on the strong foundations provided by our core assets."