Serica Energy Ord Shs SQZZF

Nice progress - Kambuna wells finished

[CalifDreaming]

SERICA ENERGY PLC ("SERICA" OR THE "COMPANY") - KAMBUNA FIELD DEVELOPMENT WELLS COMPLETED

Serica Energy PLC has released an update on development activities in the Kambuna field, offshore North Sumatra, Indonesia.

Sericahas completed drilling the Kambuna No. 4 development well. Kambuna No.4 is a deviated well drilled from the wellhead platform at the KambunaNo. 2 location in the north of the field to a subsurface location 2,180metres to the south of Kambuna No. 2. It has been drilled to a totaldepth of 7,408 feet true vertical depth below mean sea level (TVDSS).The well entered the target Belumai reservoir at a depth of 7,140 feettrue vertical depth below mean sea level and encountered gas-bearingsands over an interval of 115 feet with a net pay of 107 feet (66vertical feet). The Belumai reservoir in Kambuna No. 4 was 26 feethigher than at Kambuna No. 3.

This completes the drilling phaseof the Kambuna development. Over the next few weeks, initial productiontests will be carried out on the three development wells and they willthen be shut in while the development works continue. These worksinclude the installation of an offshore and onshore pipeline and someonshore production processing facilities. Production is scheduled tocommence at the end of this year.

Serica expects to achieve anaverage gas sales price close to $6.00 (U.S.) per thousand cubic feet,about 10 per cent higher than that assumed in the reserves report filedon March 28, 2008, on SEDAR (see Stockwatch SEDAR files). The reservesreport, prepared before the results of Kambuna No. 3 and No. 4 wereavailable, estimates that the field proven plus probable reserves, on a100-per-cent basis, amount to 29.7 million barrels of oil equivalent.

Serica is the operator of the Kambuna field and holds an interest of 65 per cent in the project.

PaulEllis MA (Oxon), engineering, and Serica's chief executive officer, whohas over 35 years of experience in the upstream oil and gas industry,has reviewed and approved the technical information contained in thisnews.