KrisEnergy completes Serica assets acquisition

Singapore-based KrisEnergy Ltd has accomplished the acquisition of Serica Energy PLC's oil and gas assets in South East Asia, including blocks in Indonesia, for US$105.4 million.
With the acquisition, Serica's interests in Indonesia now comprise a 25% interest in the Kambuna field, a 30% interest in the Kutai PSC, and a 100% interest in the East Seruway PSC.
Meanwhile, KrisEnergy controls 25% interest in Kambuna gas field and 24.6% interest in Kutai PSC. Serica's financial adviser for the acquisition is JP Morgan Cazenove. Serica plans two or three wells drilling in the second half 2010 in the Kutai PSC.
Production from the Kambuna field was temporarily suspended on 25 September at the request of the gas buyer, the Indonesian state electricity generation company PLN, so that it could carry out necessary repairs to its gas turbine generators. Production from the field restarted on 7 November at an initial rate of 10 million standard cubic feet (mmscf) per day. Resumption of gas sales also allows condensate sales to restart. The Kambuna field produces approximately 100 barrels of condensate per mmscf of gas
The gas sales contract with PLN provides for a contract quantity of 35 mmscf/day for the first twelve months and it has already been demonstrated that rates in excess of this can be delivered. Once full production is reached, every effort will be made to deliver in excess of 35 mmscf/day to PLN. Sales of 12 mmscf/day to the second buyer are expected to commence in January 2010 plus a further 4-5 mmscf/day of sales for LPG production.

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