Serica Energy plc ("Serica" or the "Company")
ANALYST PRESENTATION AND OPERATIONAL UPDATE
London, 16 July 2015 - Serica Energy plc (AIM: SQZ) will today hold a presentation for analysts at 10.30 BST at the offices of Peel Hunt, Moor House, 120 London Wall, London EC2Y 5ET.
The presentation provides an update on the Company's operations following the purchase of an 18% interest in the producing North Sea Erskine Field and the recommencement of production from the field on 26 May 2015. A copy of the presentation will be available on the Company's web-site.
The presentation includes figures on production performance since restart to date. Although further time is required to fully assess the results of the six month shutdown at Lomond which was aimed at improving downstream facilities and production uptime, early indications of the infrastructure performance since the re-start of Erskine production are encouraging. Export rates net to Serica from the Erskine field have exceeded 3,000 boepd on 25% of the days since the re-start and facilities uptime exceeded 83%. Four of the five producing wells are on production and the fifth well is planned to be brought on to production later in the third quarter following work to release a closed downhole valve. Production net to Serica over the period has exceeded 2,000 boepd.
It is the Company's intention to work closely with the Erskine field operator to both monitor and improve performance where possible and to seek ways of reducing costs and improve efficiencies. A full update on operations will be made at the time of the Company's Interim Results later in the third quarter as more production history becomes available and production performance becomes clearer.
Technical Information
The technical information contained in the announcement has been reviewed and approved by Clara Altobell, Head of Operations at Serica Energy plc. Clara Altobell (MSc in Petroleum Engineering from Imperial College, London) has 19 years of experience in oil & gas exploration, production and development and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
Tony Craven Walker, Chairman commented:
"We are pleased to be able to report good performance from the Erskine field following its return to production at the end of May, with recent investment in downstream infrastructure reflected in an 83% uptime since the restart. Four of five wells are now in production, providing production rates of more than 3,000 boepd net to Serica for a quarter of the time since the re-start. The fifth well is expected to enter production by the end of the year. We look forward to updating shareholders on further progress in due course, as we continue to work to realise the full potential of this asset."
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NOTES TO EDITORS
Serica Energy is an oil and gas exploration and production company with exploration, development and production assets in the UK and Norway and exploration interests in the Atlantic margins offshore Ireland and West Africa. The Company is in partnership with other companies in its licences offshore UK, Ireland, Morocco and Namibia. Further information on the Company can be found at www.serica-energy.com.
The Company is listed on the AIM market of the London Stock Exchange under the ticker SQZ and is a designated foreign issuer on the TSX. To receive Company news releases via email, please contact [email protected] and specify "Serica press releases" in the subject line.
FORWARD LOOKING STATEMENTS
This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond Serica Energy plc's control, including: geological, geophysical and technical risk, the impact of general economic conditions where Serica Energy plc operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Serica Energy plc's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Serica Energy plc will derive therefrom.
