Serica Energy plc said it was yet to find commercial quantities of hydrocarbons during drilling the North Eigg exploration well in the UK North Sea.
OPERATIONS
The company drilled well 3/24c-6B to a total depth of 16,728 feet and encountered 16 feet of hydrocarbon-bearing sands.
“These have confirmed the presence of hydrocarbons at a deeper depth than in the adjacent producing Rhum field,” said Serica in a statement.
“A full suite of wireline logging data has been acquired and our analysis is ongoing.”
SUSPENSION
Serica added that it would determine whether a future sidetrack location could be designed to better evaluate the volumes of hydrocarbon.
The company intends to suspend the well pended the results of further work prior to future potential re-entry and sidetrack.
Serica said that the net after tax cost of the well to the company would be some £13 million.
“Although the North Eigg exploration well has not delivered the result we had hoped for, it has
demonstrated the presence of hydrocarbons and provided a huge amount of high-quality data,” said chief executive Mitch Flegg.
“In particular, the presence of hydrocarbons at deeper than expected depths will lead to a re-evaluation of both North Eigg and South Eigg.”
PORTFOLIO EXPANSION
He added that Serica would continue to seek greater clarity on the taxes on the UK oil and gas sector as it reviews new opportunities in the North Sea and elsewhere.
“While we believe in the importance of the UK oil and gas sector, we are now considering opportunities in other countries alongside those in the UK as we continue to seek to expand our portfolio and create value for all of our stakeholders.”
H2 2022 PRODUCTION
The company also published production results for the second half of 2022 with net production year-to-date averaging 25,955 boe/d.
| Jul 22 | Aug 22 | Sep 22 | Oct 22 | Nov 22 | ||
| Bruce / Keith | (boe/d) | 5,6611 | 8,644 | 8,111 | 7,829 | 7,070 |
| Rhum | (boe/d) | 13,046 | 11,269 | 14,784 | 17,115 | 18,641 |
| Erskine | (boe/d) | 807 | 1,225 | 1,321 | 2,113 | 1,794 |
| Columbus | (boe/d) | 1,712 | 6062 | 1,591 | 1,274 | 1,472 |
| (boe/d) | 21,226 | 21,744 | 25,807 | 28,331 | 28,977 |
and early August. 2 Columbus and Erskine also affected by planned maintenance shutdowns (Serica)
Full year 2022 production is expected to be within the existing guidance range of 26,000 to 28,000 boe/d, of which more than 85% is gas, added Serica.