Serica Energy plc (TSX Venture & AIM: SQZ) today announces its financial results for the three months ending 31 March 2008. The results and associated Management Discussion and Analysis are included below and copies are available at www.serica-energy.com and www.sedar.com
Q1 2008 Highlights
Operational
- Significant progress on the development of the Kambuna field, Indonesia
- Excellent terms agreed for the sale of gas (average of approximately US$6.00 per mcf expected)
- Kambuna production platform successfully installed
- Kambuna wells 2, 3 and 4 drilled and ready for completion and initial testing
- First production due at the end of 2008
- Columbus Field Development Plan to be submitted to the UK authorities later this year
- Acquired additional 25.5% working interest in the Kutai PSC in East Kalimantan, Indonesia
- 2D seismic survey completed in Spain, data currently being interpreted
Financial & Corporate
- Completion of a placing raising approximately US$49 million for the Company
- Jonathan Cartwright, Finance Director of Caledonia Investments plc, joined the Board as a non-executive director
Forward Programmes
South East Asia
- Kambuna development continues
- Onshore and offshore pipelines to be laid and onshore facilities to be built later this year
- Offshore South Vietnam - Exploration well due to be drilled in 2H 08
Europe
- Two appraisal wells due to be drilled on the Bream field in Norway in Q3 2008
- Site surveys to be completed in the Slyne basin, Offshore Ireland in Q3 2008, ahead of a 2009 drilling programme
- Site survey to be carried out in the Chablis gas field, in preparation for drilling an appraisal well
Serica's Chief Executive, Paul Ellis commented:
"For the remainder of 2008 Serica's priority is the completion of the Kambuna field development programme with first production targeted for the end of the year. Serica also expects to participate in the drilling or completion of seven development, exploration or appraisal wells in Western Europe and South East Asia.
Serica's strategic objective is to bring forward its development programmes and to build its production revenue base as rapidly as possible, in order to make the business self-sufficient and to create shareholder value."
MANAGEMENT OVERVIEW
During the first quarter 2008 Serica Energy plc has focused its efforts on its programme of development wells in the Kambuna field, offshore Indonesia, and reported that excellent terms have been agreed for the sale of gas to be produced from the field.
In January the Company announced the completion of a placing of 24,770,354 new ordinary shares on both AIM in London and the TSX Venture Exchange in Toronto. The total amount raised for the Company was approximately US$49 million after expenses. The funding available from the US$100 million senior debt facility, in conjunction with the finance raised in the placing, provides resources to progress the Company's exploration, appraisal and development programmes.
In March Serica announced that Jonathan Cartwright had joined the Board as a non-executive director. Mr Cartwright is Finance Director of Caledonia Investments plc which owns 13% of the Company's ordinary shares. -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
