Serica says Kambuna is already beating gas target

SMALL BUT BEAUTIFULOIL and gas firm Serica Energy said the Kambuna oil field in Indonesia has already exceeded its gas sales target of 50 million standard cubic feet per day (mmscfd).

The group, which has a market cap of 194 million, said the Kambuna-3 production well tested at a maximum stabilised rate of 40mmscfd.

In April, Serica said the Kambuna-2 production well had tested at a rate of 33mmscfd.

The group is yet to test the final well, Kambuna-4, which will be tested in the next few weeks.

Chief executive Paul Ellis said: "With two of our three wells now tested at high rates and the third well yet to be tested, we have already demonstrated a total stabilised flow rate of 73mmscfd, which exceeds our sales gas target of 50mmscfd by a comfortable margin."

He added: "This provides excellent assurance that the Kambuna field will produce at the planned initial rates."

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

In addition to its work in Indonesia, the company also has interests in Norway, Spain, Ireland and Vietnam.