Serica Energy plc reported that hydrocarbons comprising 80% gas had started flowing from Columbus C1z development well into the Arran subsea system.
CAPACITY
The commingled Arran and Columbus production streams are being exported to the Shearwater platform for processing and onward export to the gas and liquid sales points.
For the first 14 days from 24 November, production was constrained due to temporary unavailability of full capacity in the export system but Columbus achieved average gross production rates of 6,300 boe/d of which more than 80% is gas.
The company said that full capacity in the export system was expected to be available to Columbus by mid-January 2022.
Serica added that production during H2 2021 was benefiting from the investment in the Rhum R3 well reintervention and the Columbus development project undertaken during 2020.
BRUCE KEITH RHUM (BKR)
From 1 January 2022, Serica said it would retain 100% of the cashflow from its Bruce, Keith and Rhum (BKR) assets (2021: 60%) to benefit further from increased production levels.
A rig has been contracted to drill the high-impact North Eigg exploration well, located near the BKR fields, during the summer of 2022.
Serica expects a successful discovery could be tied back to existing infrastructure in a carbon neutral manner.
Plans are also in place for a well intervention campaign during 2022 to improve the production potential of several Bruce and Keith wells.
OPPORTUNITIES
Chief executive Mitch Flegg, said that the company had made significant progress during the second half of 2021.
“The impact of the substantial investment programmes undertaken in 2020 and 2021 has been increased production levels providing responsibly sourced gas to the UK domestic market, protecting security of supply, and reducing reliance on imports as part of the transition to a lower carbon future.
“Serica has no debt, limited decommissioning liabilities, growing cash reserves and so is well positioned to continue to invest in further projects (including North Eigg) and other opportunities to add shareholder value.”