Serica Energy plc announced strong production and cash position for May 2022 from its gas operations in the UK North Sea.
OPERATIONS
More than 85% of Serica’s production is gas and its operated North Sea assets provide more than 5% of the UK’s gas production.
The month of May saw net production average in excess of 28,000 boe/d with average net production YTD in excess of 26,000 boe/d.
The company said that 2022 production was benefiting from investments in its portfolio, including the R3 well and the Columbus development, which were executed during a period of much lower gas prices.
FINANCES & NEW LEVY
Strong gas prices have resulted in a strong financial position for Serica.
At the end of May, cash and deposits had increased to £246 million with a further £150 million lodged as security.
The company said it still had no debt and limited decommissioning liabilities.
Serica added that its share price fell following the Government’s announcement of the Energy Profits Levy, but that the new tax applied to profits after 26 May.
NORTH EIGG & BRUCE
The company added its plans for the North Eigg exploration well were at an advanced stage, and spudding is scheduled for early Q3 2022.
Serica will drill the well, targeting more than 60 million boe of P50 unrisked recoverable prospective resources, with results expected by early October.
The first phase of the light well intervention campaign has also started with operations on the Bruce M1 well.
The campaign aims to add reserves and prolong production from several subsea wells.
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