Serica Energy
plc
("Serica" or the
"Company")
2023 Year End Reserves and
2024 Production Update
London, 7 March 2024 - Serica Energy plc (AIM:
SQZ), a British independent upstream oil and gas company with
operations in the UK North Sea, today announces its estimated oil
and gas reserves at 31 December 2023 and an update on production
during January and February 2024. The reserves estimates are
extracted from an independent report prepared by RISC Advisory in
accordance with the reserve definitions guidelines defined in the
SPE Petroleum Resources Management System 2018.
Highlights[1]
· Net
Proved plus Probable ("2P") reserves at 31 December 2023 of 140
million boe, up 10 million boe from 130 million boe at 31 December
2022 despite producing 14 million boe in 2023 on a proforma
combined Serica and Tailwind basis
· Overall 2P reserves additions of 24 million boe during 2023
representing a reserves replacement ratio of 179%[2]
· Over
90% of 2P reserves in fields that are already in
production
· Even
split of oil and gas reserves
· Average net production in January and February 2024 about
45,500 boe per day
· Production guidance for 2024 remains at 41,000 to 48,000 boe
per day
Mitch Flegg, Chief Executive of
Serica, said:
"I
am delighted that Serica has maintained its record of more than
replacing reserves since 2018, with the company ending 2023 with
higher reported reserves than from the combined Serica and Tailwind
portfolios at the start of the year even after allowing for the oil
and gas we produced in 2023. Nearly all the additions to reserves
reported today are associated with fields that are already
producing which limits incremental emissions. This record of
delivery is a testament to the hard work of our staff and the
underlying quality of the asset portfolio.
Production in the early part of 2024 has been encouraging and
we look forward to the future impact of executing our investment
programme this year. We are on track to commence the planned well
intervention and drilling activities on the Bruce and Triton assets
during the coming month.
It
would be remiss not to express considerable disappointment with the
extension of the EPL announced in the Budget yesterday. Current oil
and gas prices do not represent windfall conditions for UK
producers and increasing the tax burden on domestic oil and gas
production again will be damaging for UK jobs and the economy. The
achievements delivered by Serica have added to domestic sources of
energy. The kind of approach exhibited in the Budget will lead to
more imports and reduce the ability of our industry to enhance the
UK's resilience to potential energy shocks in the
future."
Oil
and Gas Reserves
The 2P reserves net to Serica and
movement during 2023 are summarised in the table below. The
reserves at 31 December 2022 and 2023 production are pro-forma
numbers, including the assets of Tailwind throughout the
year.
|
Oil
(mmbbl)
|
Gas
(bcf)
|
Total
(mmboe[3])
|
2P Reserves at 31 December
2022
|
65
|
380
|
130
|
2023 Production
|
(7)
|
(37)
|
(14)[4]
|
Revisions
|
12
|
67
|
24
|
2P Reserves at 31 December
2023
|
70
|
410
|
140
|
Revisions include the following
items (increase unless stated):
· Bruce
Hub
o Future investments in Bruce Hub facilities and wells including
Bruce SCE infill well, Bruce and Keith well interventions and
LP[5] compression project on the Bruce
platform
o Updated Bruce and Rhum reserves reflecting better than
previously projected performance of producing wells during
2023
o Reduction arising from deferral of Bruce field reservoir
stimulation project following reprioritisation of
opportunities
· Triton
Area
o Gannet E reserves updated to reflect better than originally
projected performance of GE0-04 well following first oil during
2023
o Progress towards Belinda development including the exercise of
rig option
o Reduction in Bittern reserves due to remodelled production
projections
· Columbus
o Increase to reflect better than expected production during
2023
2024 Production[6]
Average net production during
January and February 2024 was about 45,500 boe per day.
Production guidance for 2024 remains
at 41,000 to 48,000 boe per day.
Regulatory
This announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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 &
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
|
+44
(0)20 7390 0230
|
Mitch Flegg (CEO) / Martin Copeland
(CFO) / Stephen Lambert (VP Legal and External
Relations)
|
|
|
|
Peel Hunt (Nomad & Joint Broker)
|
+44
(0)20 7418 8900
|
Richard Crichton / David McKeown /
Georgia Langoulant
|
|
|
|
Jefferies (Joint Broker)
|
+44
(0)20 7029 8000
|
Sam Barnett / Will Soutar
|
|
|
|
Vigo Consulting (PR Advisor)
|
+44
(0)20 7390 0230
|
Patrick d'Ancona / Finlay
Thomson
|
serica@vigoconsulting.com
|
NOTES TO EDITORS
Serica Energy is a British
independent oil and gas exploration and production company with a
portfolio of UKCS assets.
Serica has a balance of gas and oil
production. The Company is responsible for about 5% of the natural
gas produced in the UK, a key element in the UK's energy
transition.
Serica's producing assets are
focused around two main hubs: the Bruce, Keith and Rhum fields in
the UK Northern North Sea, which it operates, and a mix of operated
and non-operated fields tied back to the Triton FPSO. Serica also
has operated interests in the producing Columbus (UK Central North
Sea) and Orlando (UK Northern North Sea) fields and a non-operated
interest in the producing Erskine field in the UK Central North
Sea.
Serica's portfolio of assets
includes multiple organic investment opportunities.
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 and the Company is a designated
foreign issuer on the TSX. To receive Company news releases via
email, please subscribe via the Company website.