Here are my notes from Friday's AGM. Slide refs are to the AGM presentation given by Paul Ellis, CEO, http://www.serica-energy.com/downloads/pdf/2010-06-25-Serica-AGM-Presentation-2010.pdf . Most of my questions were asked after the meeting rather than in the presentation. The chairman (Tony Craven Walker)'s statement provides a good overview of the company http://www.investegate.co.uk/Article.aspx?id=201006251430062640O .The only surprise there being that they are switching from the Venture exchange on TSX to the main board. From the statement:
We expect to know the outcome of the Oates well around the end of August when we should also be starting our two well drilling programme in the Kutai PSC, offshore East Kalimantan in Indonesia. The programme will commence with the drilling of the Dambus well followed by the Marindan well. Serica holds a 30% interest in these wells, both of which could be material to the Company if successful.
Shareholders are therefore exposed this year to an exploration drilling programme which holds much promise and which is now underway. The differing natures and geographical locations of the prospects means that the outcome of any one well will not change the prospectivity of the other wells and each should be taken as they come.
The Company has done its best to mitigate against a negative outcome by farming out or reducing its interests in the individual wells so that the programme is easily met from the Company's financial resources.
[my bold]
Slide 9 - general move out of SE Asia because "better returns elsewhere". All their remaining acreage is in Indonesia, where they are applying for further blocks. IMO this makes them now uninteresting for Salamander, so w will not see a return of that bid - although of course major success in Kutai this year could change things.
Slide 11 - Kambuna production. The hiccup in the first few weeks was not their fault. The pipeline taking the gas from the Pangkalan Facility to Poewer station also receives gas from another small field, previously that gas had had the liquids knocked out of it, but that was switched off, so all of a sudden the Power Station was getting liquids into the turbines, no scrubber at the power station and as it was Ramadan, no-one noticed until a fair amount of damage ad been caused...
There will be negotiations over the Take or Pay clauses in the contract, as there are some…
