Serica Energy plc Recommencement of Production from Erskine (5874F)
July 29 2016 - 1:00AM
UK Regulatory
TIDMSQZ
RNS Number : 5874F
Serica Energy plc
29 July 2016
Serica Energy plc ("Serica" or the "Company")
Recommencement of Production from Erskine
London, 29 July 2016 - Serica Energy plc (AIM: SQZ) provides the
following operations update:
Serica is pleased to announce that oil and gas production from
the Erskine field has recommenced following the clearance of a
pipeline blockage and the completion of scheduled maintenance works
on the Lomond platform.
The pipeline blockage, which occurred earlier this year in the
Lomond to Everest condensate export line, was caused when a foam
cleaning device known as a pig became lodged in the pipeline due to
a build-up of wax. Successful clearance procedures included
pressure pulsing using diesel from both ends of the pipeline and
latterly the injection of a wax solvent. The field then remained
shut-in to accommodate a planned two month maintenance programme on
the Lomond platform, which commenced in late May to coincide with
the planned one month shut down for maintenance of the CATS gas
export and processing facilities through which Erskine gas is
exported.
On completion of these maintenance programmes condensate flow
from the Lomond field started in mid-July in order to flush the
export line, with higher volume Erskine production re-commencing
from late on the 27(th) July. Following a short period for final
clean-up during the first week of August, production from Erskine
is projected to build-up rapidly to the fully unconstrained levels
achieved prior to the shut-down.
As part of the ongoing operations designed to improve production
efficiencies and ensure continuous export availability, an
increased programme of regular pigging and wax inhibitor injection
is to be implemented in order to prevent a re-occurrence of wax
build-up once full production has been re-established. The
scheduled pigging operations will also enable a full integrity
survey of export infrastructure to be completed to determine the
potential to extend infrastructure operating life.
Tony Craven Walker, Serica's Chairman commented:
"Since Serica acquired its interest in the Erskine field in June
2015, it has made a significant contribution to cashflow and
profits. This has equipped us to withstand issues such as this
shutdown. Now that production has resumed we expect this strong
performance to continue as we seek to add further interests to
increase shareholder value at a time of low oil and gas
prices."
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 20 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).
Regulatory
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Enquiries:
Serica Energy plc
+44 (0)20 7487
Tony Craven Walker tony.cravenwalker@serica-energy.com 7300
Peel Hunt
+44 (0)20 7418
Richard Crichton richard.crichton@peelhunt.com 8900
+44 (0)20 7418
Ross Allister ross.allister@peelhunt.com 8900
Instinctif
+44 (0)7831
347 222
David Simonson david.simonson@instinctif.com +44 (0)20 7457
George Yeomans george.yeomans@instinctif.com 2020
NOTES TO EDITORS
Serica Energy is an oil and gas exploration and production
company with exploration, development and production assets in the
UK 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
serica@instinctif.com 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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July 29, 2016 02:00 ET (06:00 GMT)