Serica Energy provides operations update
Monday, Jan 29, 2018
Serica Energy, an independent oil and gas company with production, development and exploration licence interests in the UK North Sea and exploration interests in Ireland and Namibia, is pleased to provide an operations update.

Highlights:

  • Significant expansion and diversification of portfolio with planned acquisition of BP’s interests in the Bruce, Keith and Rhum North Sea fields
  • Average production of approximately 1,975 boe/d net to Serica from Erskine in 2017
  • Tender process underway for drilling rig to commence Rowallan exploration well in H2 2018
  • Rig contracted to perform Rhum #3 well intervention
  • Robust financial position, with cash balance at year-end standing at US$34 million while remaining virtually debt-free

Mitch Flegg, Chief Executive of Serica Energy, commented:

“Serica has made major advances in the final quarter of 2017, with the proposed acquisition of the Bruce, Keith and Rhum (“BKR”) assets from BP, announced in November. In line with our strategy to expand production, add substantial value and spread risk through an enlarged and diversified portfolio, the acquisition will place the Company among the leading independent UK North Sea operators. This was achieved with no shareholder dilution. The Company remains virtually debt-free and has limited its exposure to downside commodity prices through hedges. We are fully funded in respect of all our capital commitments.

2018 promises to be a very active year for Serica. The primary objective is to complete the acquisition of BKR, following which we expect to see substantial production growth. We are also working closely with the Erskine and Lomond operators to improve infrastructure performance downstream of Erskine. We expect to make a decision on the export route for Columbus production during H1 2018. Separately, preparations are advancing for two important wells in our portfolio. On the Rhum field, a rig has been contracted to carry out the Rhum #3 well intervention, which has the potential to add significantly to Serica’s daily production rates. A tender process is also underway to contract a rig to drill the high-impact Rowallan prospect, which will be drilled at no cost to Serica.

To support Serica’s expansion, we have made several additions to the management team and are excited to be welcoming the high-quality BP staff that will be transferring across to Serica as part of the BKR transaction.

Over the coming months, we will be growing our team in Aberdeen and expect to open a new operational headquarters in the city in summer 2018.”

For more information, please visit: http://www.serica-energy.com

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