Monday, December 07, 2009

Serica divests Kambuna and Kutai oil-gas blocks

Serica Energy plc, listed on TSX Venture, announces that it has reached agreement for the sale of some of its interests in South East Asia including interests in two assets in Indonesia.
Serica has agreed to sell a package of assets in Indonesia and Vietnam to KrisEnergy Limited (“KrisEnergy”), a recently formed private E&P company based in Singapore. The assets to be sold comprise a 25% interest in the Kambuna gas field in Indonesia, a 24.6% interest in the Kutai PSC in Indonesia and a 33.33% interest in the Block 06/94 PSC in Vietnam. The consideration to be paid by KrisEnergy for these assets is US$98.6 million in cash.
Following this sale, Serica’s interests in Indonesia will comprise a 25% interest in the Kambuna field, a 30% interest in the Kutai PSC and a 100% interest in the East Seruway PSC. The Company will no longer hold any interests in Vietnam.
Coming shortly after the commencement of production from the Kambuna gas field in Indonesia, this sale will enable Serica to focus its resources on next year’s exploration programme and on any suitable acquisitions.
"Having recently brought the Kambuna field into production, we believe that this is the best time to monetize part of the asset. We expect to be drilling two or three wells in the second half of 2010 in the Kutai PSC," Paul Ellis, CEO of Serica said.
Completion of this transaction is subject to joint venture partner and regulatory approvals. Serica’s financial adviser is J.P.Morgan Cazenove.
First Reserve Corp, a private equity firm, has committed up to US$500 million in equity financing for KrisEnergy Holdings Ltd, a new Asia-focused oil and gas company. KrisEnergy's founding team previously formed Pearl Energy.

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