TIDMSQZ
RNS Number : 3870V
Serica Energy PLC
05 April 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
For Immediate Release
5 April 2023
Serica Energy plc
("Serica" or the "Company")
2022 Year End Reserves
London, 5 April 2023 - Serica Energy plc (AIM: SQZ) today
announces the results of the independent[1] estimates of oil and
gas reserves for each of the Serica and Tailwind groups of
companies as at 31 December 2022.
Mitch Flegg, Chief Executive of Serica commented:
"These independent estimates are a testament to the activities
undertaken by both Serica and Tailwind in recent years to enhance
the recovery of hydrocarbons from their respective fields, to
extend the productive lives of the Bruce and Triton production hubs
and to meet the objectives of the North Sea Transition Deal. All
the reserves additions reported today are associated with fields
that are already producing and, therefore, do not depend on new
field development consents or the installation of new
infrastructure.
Following the acquisition of Tailwind, Serica is a top 10
producer in the UKCS and a significant contributor to the UK's
energy security."
The main features of the reserves estimates for the combined
portfolios reported today are as follows:
-- Pro-forma Proved plus Probable ("2P") reserves of 130.4
mmboe[2] as at 31 December 2022 compared to 104.0 mmboe as at 31
December 2021.
-- Net upward reserves revision more than three times amount produced in 2022[3].
-- Near even split of reserves between oil and gas.
Approximately 58% of combined production from the two portfolios in
2022 was gas.
-- Upwards revisions due to maturation of contingent resources
to 2P reserves following sanction of four infill wells in Triton
area fields and well work on Bruce field, commencement of planning
for Bruce infill drilling and extension of production from both the
Bruce and Triton hubs from 2030 to 2035.
-- Downward revisions in 2P reserves associated with the
Columbus field (poor well performance) and the Orlando field
(possible cessation of service from Ninian host facility at the end
of 2026).
Movements in 2P Reserves Estimates (all amounts in mmboe)
Pro-forma Combined
31 December 2022 Production Revisions 31 December
2021 2022
----------
Serica 62.2 (8.3) 21.0 74.9
------------ ---------------- ---------- ------------
Tailwind 41.8 (4.2) 17.9 55.5
------------ ---------------- ---------- ------------
Total 104.0 (12.5) 38.9 130.4
------------ ---------------- ---------- ------------
Serica
Oil Gas Total
------------------
31 December 2021 13.2 49.0 62.2
------ ------ ------
2022 Production (1.5) (6.8) (8.3)
------ ------ ------
Revisions 7.0 14.0 21.0
------ ------ ------
31 December 2022 18.7 56.2 74.9
------ ------ ------
Tailwind
Oil Gas Total
------------------
31 December 2021 36.6 5.2 41.8[4]
------ ------ --------
2022 Production (3.8) (0.4) (4.2)
------ ------ --------
Revisions 13.3 4.6 17.9
------ ------ --------
31 December 2022 46.1 9.4 55.5
------ ------ --------
[1] The reported estimates are based on independent reports
prepared by RISC Advisory for Serica and ERCE for Tailwind in
accordance with the reserves definitions guidelines defined in SPE
Petroleum Resources Management System 2018.
[2] In the reserves report for Serica, oil equivalent values are
based on a conversion of 6.0 mscf per 1 boe for reporting and
comparison purposes. As the actual calorific values of gas produced
vary, the amounts for each field and the total amounts reported
here may not convert precisely. For consistency, Serica has applied
the same conversion factor to the gas volumes reported in cubic
feet by ERCE.
[3] On a combined pro-forma basis, 2022 revision / production in
2022 = 311%
[4] The reported 2021 figures are considered Technically
Recoverable Reserves as no Economic Limit Test was conducted by
ERCE for year end 2021
Regulatory
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, as retained in the UK
pursuant to S3 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 & 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:
+44 (0)20 7390
Serica Energy plc 0230
Mitch Flegg (CEO) / Andy Bell (CFO)
+44 (0)20 7418
Peel Hunt LLP (Nomad & Joint Broker) 8900
Richard Crichton / David McKeown
Jefferies (Financial Advisor & Joint +44 (0)20 7029
Broker) 8000
Tony White / Will Soutar
+44 (0)20 7390
Vigo Consulting (PR Advisor) 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.
On 20 December 2022, Serica announced that it had entered into
an agreement to acquire the entire issued share capital of Tailwind
Energy Investments Ltd from Tailwind Energy Holdings LLP. The
transaction completed on 23 March 2023.
Following the addition of the Tailwind assets to its portfolio,
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 several organic investment
opportunities which are currently being pursued or are under
consideration.
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.
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