RNS Number : 5923S
Serica Energy PLC
17 March 2021
Serica Energy plc
("Serica" or the "Company")
Columbus Development Well Spud
London, 17 March 2021 - Serica Energy plc (AIM: SQZ) is pleased
to announce the spud today of the Columbus 23/16f-CDev1 development
well in the UK Central North Sea which will be drilled to a total
depth of 17,600ft and will include a 5,600ft horizontal section.
The well is being drilled with the Maersk Resilient Heavy Duty Jack
Up rig and is expected to take around 70 days.
The Columbus development area is 35km north east of the
Shearwater production facilities and will be drained by a single
producing well tied into the existing Arran to Shearwater pipeline.
A recent Competent Person's Report estimates the Columbus gross
undeveloped 2P reserves to be in excess of 14 million barrels of
oil equivalent ("boe").
After drilling this development well, an open-hole sand-screen
completion will be installed and a short clean-up flow and well
test will be performed to provide production data and prepare for
flowing into the export system. The well will then be
Later in the year, the well will be connected to the Arran
pipeline, through which Columbus production will be exported along
with Arran Field production. When the production reaches the
Shearwater platform, the gas and liquids will be separated, and the
gas exported via the SEGAL line to St Fergus and the liquids
through the Forties Pipeline System to Cruden Bay.
Production is expected to commence in early Q4 2021, with
average gross production forecast to be around 7,000 boe/d, of
which over 70% is gas.
Serica is Operator and has a 50% interest in this low risk
development opportunity offering attractive returns for the
Company. Our partners are Waldorf Production UK Ltd (25%) and
Tailwind Mistral Ltd. (25%).
An update will be provided when drilling operations are
Further details on Columbus can be found at
Mitch Flegg, Chief Executive of Serica Energy, commented:
"I am delighted that drilling operations have commenced on the
development well, which is a significant milestone for the Company
as Columbus is the first development project that Serica has
undertaken as operator in the North Sea.
We have worked closely with our partners and with infrastructure
owners to design a cost-effective development which minimises
environmental impact through, among other things, the extensive use
of pre-existing infrastructure. Over 70% of Columbus production
will be natural gas which is a key element of the UK's energy
Elsewhere, the Rhum R3 intervention project is progressing
towards completion and, following operations to the reinstate
production, is expected to make a significant contribution to
overall field performance.
Columbus and the Rhum R3 intervention work are part of a
continuing programme of investment in our portfolio which is
planned to continue in 2022 with the North Eigg exploration well.
Our commitment to this investment is part of our long-term strategy
to generate value from our portfolio of UK assets and leveraging
our internal skillsets and strong financial position."
This announcement contains inside information.
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
Serica Energy plc +44 (0)20 7390 0230
Tony Craven Walker, Executive Chairman
Mitch Flegg, CEO
Peel Hunt (Nomad & Joint Broker) +44 (0)20 7418 8900
Richard Crichton / David McKeown / Alexander
Jefferies (Joint Broker) +44 (0)20 7029 8000
Tony White / Will Soutar
Vigo Communications +44 (0)20 7390 0230
Patrick d'Ancona / Chris McMahon / Simon email@example.com
NOTES TO EDITORS
Serica Energy is a British independent oil and gas exploration
and production 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 (including Columbus) is natural
gas, a key element in the UK's energy transition.
Further information on the Company can be found at
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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(END) Dow Jones Newswires
March 17, 2021 08:00 ET (12:00 GMT)