UK Serica Enjoys Reserves, Output Boost
UK independent Serica has benefited from a reserves and an output boost in 2018, it said April 17, as its UK North Sea acquisitions start to pay dividends.
Cash balances and term deposits stood at $91.8mn at March 31, compared with $54.9mn at December 31 – a $36.9mn increase during the first three months of 2019. Full-year production from the Bruce, Keith and Rhum interests (BKR) net to Serica and acquired last year – amounted to over 24,000 boe/d.
Gross profit rose by 30.6% to $25.2mn reflecting one month of post completion BKR fields and two and a half months of income from Erskine after an extended shut-in to complete a bypass of the condensate export line. Net production from the BKR and Erskine fields has totalled over 30,000 boe/d in Q1 2019.
Net 2P reserves at year end went up to 68.8mn boe reflecting an increase in Erskine reserves and addition of Columbus reserves, it said. Following the Lomond export facilities upgrade, Serica's share of Erskine's estimated remaining 2P reserves rose to 5.7mn boe as at 31 December 2018, an 84% increase over the 3.1mn boe estimated at 31 December 2017. With regard to Columbus, Serica's share of net 2P reserves is 6.2mn boe as of January 1, 2019, according to an independent assessment.
Serica submitted the Columbus field development plan to the Oil & Gas Authority in June 2018 and was granted development and production consent in October 2018. First gas is targeted for 2021.
CEO Mitch Flegg said Serica aimed to extend the "field life of the BKR assets by concentrating on enhancing recovery and reducing costs through eliminating unnecessary complexity. The multi-disciplinary team is already delivering exceptional results as demonstrated by the continued strong production during the first four months of Serica BKR operatorship."
The company is also aiming to grow its portfolio around the Central and Northern North Sea and – coupled with tax synergies – this means that the search for new opportunities is currently focused on the UK.