TIDMSQZ
RNS Number : 0906P
Serica Energy PLC
07 February 2023
Serica Energy plc
("Serica" or the "Company")
Operations Update
London, 7 February 2023 - Serica Energy plc (AIM: SQZ), a
British independent upstream oil and gas company provides the
following operations update.
Production
Serica's net production continues to benefit from the ongoing
investment programmes that the company has undertaken since the
acquisition of interests in Bruce, Keith and Rhum in 2018. Serica's
2022 net production averaged 26,182 boe/d.
Serica's net production is as follows:
FY 2022 Jan 2023
Bruce /
Keith (boe/d) 6,892 5,558
Rhum (boe/d) 15,721 14,581
Erskine (boe/d) 1,683 1,846
Columbus (boe/d) 1,886 1,742
Total (boe/d) 26,182 23,727
The R3 reintervention programme in 2021 has increased the gas
element of Serica's production such that the proportion is now
greater than 90% gas.
Early production rates in 2023 were slightly lower than the 2022
average due to a period of maintenance work on a gas compressor on
the Bruce platform which limited Bruce and Rhum production, but
which has now been returned to service.
Net production from the Tailwind portfolio of assets has
averaged 19,600 boe/d in January 2023 giving a combined net
production rate of over 43,300 boe/d in January.
2023 Production Guidance
As previously announced, and subject to completion, the average
net production for 2023 from the combined Serica and Tailwind
portfolios is expected to be in the range of 40,000 - 47,000
boe/d.
Operations
The Diving Support Vessel Deep Discoverer has mobilised to the
Triton area and has commenced the work programme to tie-in
Tailwind's Gannet GE-04 well. This well was drilled late in 2022
and completed in January. It is expected that first production will
occur in February. The well results were above the pre-drill
expectation and flow rates are expected to exceed 8,000 barrels of
oil per day when the well is fully beaned up during March.
A number of interventions on Bruce platform wells are planned in
Q2 2023 and the second Bruce Light Well Intervention Vessel
campaign will take place in Q3 2023. This work follows on from the
successful 2022 campaign and is designed to add production through
re-entry and workover of existing production wells.
The first phase of the Bruce compressor upgrades will start in
2023 with commissioning in 2024. This project aims to reduce carbon
emissions by 10% of the Bruce total as Serica continues to
demonstrate its commitment to lowering the carbon intensity of its
operations. Design and selection studies for compressor
electrification projects have also commenced.
Tailwind Transaction
Completion under the SPA is subject to the satisfaction of
certain conditions precedent. Two of these conditions have now been
satisfied as follows:
-- Approval by ordinary resolution of Serica's shareholders to
allot the Consideration Shares - approval was received at a General
Meeting on 27 January 2023
-- Renewal or replacement of the OFAC License issued to Serica
on terms which permit the continued operation of the Rhum field -
Serica has received a renewed OFAC License running for two years
from the expiry date of the previous License which was 31 January
2023
The outstanding conditions are:
-- Approval under the UK National Security and Investment Act 2021
-- Receipt of the customary comfort letter from the NSTA (UK oil and gas regulator)
-- Confirmation that the Acquisition will not require the
repayment of Tailwind's existing RBL
-- Admission of the Consideration Shares to AIM
Work continues on each of these outstanding conditions, and it
is expected that they will be satisfied before the end of March
2023.
Mitch Flegg, Chief Executive of Serica Energy, commented:
"The production performance of both the Serica and Tailwind
portfolios has remained strong despite some extremely challenging
weather conditions during January. There is an exciting investment
programme of value-adding activities throughout 2023 which has
started with the work to tie-in the Gannet GE-04 well. I look
forward to updating the market with results of this programme as
data becomes available."
Regulatory
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, as retained in the UK
pursuant to S3 of the European Union (Withdrawal) Act 2018.
The technical information contained in the announcement has been
reviewed and approved by Fergus Jenkins, VP Technical at Serica
Energy plc. Mr. Jenkins (MEng in Petroleum Engineering from
Heriot-Watt University, Edinburgh) is a Chartered Engineer with
over 25 years of experience in oil & gas exploration,
development and production and is a member of the Institute of
Materials, Minerals and Mining (IOM3) and the Society of Petroleum
Engineers (SPE).
Enquiries:
+44 (0)20 7390
Serica Energy plc 0230
Mitch Flegg (CEO) / Andy Bell (CFO)
+44 (0)20 7418
Peel Hunt (Nomad & Joint Broker) 8900
Richard Crichton / David McKeown
+44 (0)20 7029
Jefferies (Joint Broker) 8000
Tony White / Will Soutar
+44 (0)20 7390
Vigo Consulting (PR Advisor) 0230
Patrick d'Ancona / Finlay Thomson serica@vigoconsulting.com
NOTES TO EDITORS
Serica Energy is a British independent oil and gas exploration
and production company with a portfolio of UKCS assets. The Company
is responsible for 5% of the gas produced in the UK and is pursuing
growth opportunities that promote UK energy security, fit within
the parameters of the UK North Sea Transition Deal and where it can
add value by deploying its proven technical and commercial
expertise.
Serica operates the producing Bruce, Keith and Rhum fields in
the UK Northern North Sea, and the producing Columbus field in the
UK Central North Sea. Serica also holds a non-operated interest in
the producing Erskine field in the UK Central North Sea.
On 20 December 2022, Serica announced that it had entered into
an agreement to acquire the entire issued share capital of Tailwind
Energy Investments Ltd from Tailwind Energy Holdings LLP. A
Circular was posted to shareholders on 9 January 2023, convening a
General Meeting ("GM") to vote on the proposed issuance of shares
in connection with the transaction. The resolution was voted on by
way of a poll and duly approved at the GM which was held on 27
January.
Further information on the Company can be found at
www.serica-energy.com . The Company's shares are traded on the AIM
market of the London Stock Exchange under the ticker SQZ and the
Company is a designated foreign issuer on the TSX. To receive
Company news releases via email, please subscribe via the Company
website.
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END
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