Flow Test Results from Columbus Development Well

RNS Number : 9862E

Serica Energy PLC

13 July 2021

 

Serica Energy plc

("Serica" or the "Company")

Successful Flow Test Results from Columbus Development Well

London, 13 July 2021 - Serica Energy plc (AIM: SQZ), a British independent upstream oil and gas company with operations centred on the UK North Sea, is pleased to announce successful flow test results from the Columbus development well.

The well was drilled to a measured depth of 17,600ft with a horizontal section of over a mile in length in the Forties Sandstone formation. The completion equipment has been successfully installed into the well and a flow test has now been performed. A stabilised flow rate of 38.0mmscf/d of gas and 1,560bbls/d of condensate has been achieved through a 56/64ths inch choke. This rate was at the upper end of the pre-drill range of expected outcomes and was constrained by the surface well test equipment on board the Maersk Resilient Heavy-Duty Jack-Up drilling rig.

A diving support vessel ("DSV") will tie the subsea wellhead into the Arran Field export system directly after the rig leaves location. It is anticipated that Columbus start-up will occur in Q4 2021 once initial flow from the Arran field has reached stable conditions. Once it has been brought on stream it is anticipated that the Columbus well will produce at around 7,000boe/d (gross) of which at least 75% is expected to be gas.

Columbus was discovered by Serica in 2006. Serica has a 50% interest and has been the operator throughout the exploration, appraisal and field development stages and has developed the field in conjunction with its partners Waldorf Production UK Ltd. and Tailwind Energy Ltd.

Minimal subsea equipment has been installed to enable tie-in of the Columbus well to adjacent infrastructure, thus minimising environmental impact and CO₂ emissions. This is consistent with Serica's stated objective of reducing the carbon intensity (i.e. CO₂ per barrel of oil equivalent) of its production operations. Further details on Serica's commitment to ESG (Environment, Social & Governance) can be found on our website at https://www.serica-energy.com/downloads/ESG-Report-2020.pdf

Mitch Flegg, Chief Executive of Serica Energy, commented:

"We are delighted to have achieved the objectives of this challenging but ultimately very successful campaign.

This is a significant milestone for Serica, demonstrating our ability to successfully lead a development project as well as being a proven efficient production operator.

I would like to acknowledge the skill, hard-work and dedication of our operational team who have made this outcome possible. I would also like to recognise the input and support of our joint venture partners Waldorf Production UK Ltd. and Tailwind Energy Ltd.

Columbus is part of Serica's ongoing capital investment programme which is aimed at boosting production in the second half of this year and beyond. I look forward to updating the market when we bring this Columbus well and the recently announced Rhum R3 well into production."

Regulatory

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018

The technical information contained in the announcement has been reviewed and approved by Fergus Jenkins, VP Technical at Serica Energy plc. Mr. Jenkins (MEng in Petroleum Engineering from Heriot-Watt University, Edinburgh) is a Chartered Engineer with over 25 years of experience in oil and gas exploration, development and production and is a member of the Institute of Materials, Minerals and Mining (IOM3) and the Society of Petroleum Engineers (SPE).

Enquiries:

Serica Energy plc [phone] Tony Craven Walker, Executive Chairman Mitch Flegg, CEO Peel Hunt (Nomad & Joint Broker) [phone] Richard Crichton / David McKeown / Alexander Allen Jefferies (Joint Broker) [phone] Tony White / Will Soutar Vigo Consulting [phone]  Patrick d'Ancona / Chris McMahon / Simon Woods [e-mail]

NOTES TO EDITORS

Serica Energy is a British independent oil and gas company with a portfolio of exploration, development and production assets.

Serica is the operator of the producing Bruce, Keith and Rhum fields in the UK Northern North Sea, holding interests of 98%, 100% and 50% respectively. Serica also holds an 18% non-operated interest in the producing Erskine field in the UK Central North Sea and a 50% operated interest in the Columbus Development.

Over 80% of Serica's production is natural gas, a key element in the UK's energy transition.

Further information on the Company can be found at www.serica-energy.com .

The Company's shares are traded on the AIM market of the London Stock Exchange under the ticker SQZ. To receive Company news releases via email, please subscribe via the Company website.

 

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