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    Serica sets sights on next UK gas prospect

Summary

The company is also continuing its search for acquisition opportunities.

by: Joseph Murphy

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Serica sets sights on next UK gas prospect

Serica Energy has contracted a rig to drill a high-impact well targeting the North Eigg gas prospect this summer, the London-listed company said on January 20.

North Eigg lies close to Serica's Bruce, Keith and Rhum fields, and the company hopes that a discovery could be tied back to existing infrastructure. Serica said it was also planning a well intervention campaign this year to improve recovery at several Bruce and Keith wells. 

Serica launched a third well at Rhum in late August, adding 6,000 barrels of oil equivalent/day to its production. This was followed by the company's start-up of the Columbus field in late November, contributing a further 3,270 boe/d up until year-end. As a result, Serica now accounts for more than 5% of UK gas production, it said.

The company also gained from higher gas prices last year, which soared to more than £1.13/therm from £25 in 2020. Serica was able to amass £218.4mn ($298mn) in cash resources by the end of 2021, which it said opened opportunities for further investments, acquisitions and shareholder distributions.

"2021 was a very busy year for Serica, which reinforced the value of our through-cycle investment strategy as our expenditure during the low gas price environment of 2020 on the Rhum 3 and Columbus projects bore fruit this year," Serica CEO Mitch Flegg commented. "The importance of our contribution to the provision of vital lower carbon gas to the UK's energy market was also demonstrated."

He added that the firm continued "to look for acquisition opportunities that fit our criteria and will add value for our stakeholders."