Serica Sells 15% Interest in Glagah-Kambuna TAC to Salamander Energy Subsidiary

UK-based Serica Energy has completed the sale of a 15% interest in the Glagah-Kambuna technical assistance contract offshore Sumatra, Indonesia, to a subsidiary of Salamander Energy for $52.7 million.

Serica’s interest in the Kambuna technical assistance contract (TAC) is now 50%, with Salamander holding the remaining 50%. The companies have agreed a handover protocol under which Serica’s Kambuna TAC operating responsibilities will be assumed by Salamander, a process which is expected to be substantially complete by January 1, 2009.

Paul Ellis, Serica CEO, said: “Completion of the Kambuna part of our transaction with Salamander puts Serica in a strong financial position from which to carry out our strategy of exploring and appraising a number of the large, low risk, prospects that we have in our portfolio in which we have substantial interests. In 2009, we will also begin to benefit from production revenues from our 50% interest in the Kambuna field.”