Serica Energy announces start of production at Gannet well

20th Feb 2023 09:03

(Sharecast News) - Serica Energy announced on Monday that production had started at the Gannet GE-04 well via the Triton floating production, storage and offloading (FPSO) vessel, following its final commissioning.

The AIM-traded firm said the subsea tie-in of the well was carried out by the diving support vessel Deep Discoverer, which was mobilised to the Triton area in early February.

It said the Gannet GE-04 well is currently owned by Tailwind Mistral - a wholly-owned subsidiary of Tailwind Energy.

Serica announced its intended acquisition of Tailwind Energy in December, with completion expected in March.

The well, which was drilled late last year and completed in January, had exceeded initial production expectations with rates topping 10,000 barrels of oil per day.

"Including the Tailwind acquisition assets, we have an exciting investment programme of value-adding activities throughout 2023 and 2024 which has started with the Gannet GE-04 well being brought onto production," said chief executive officer Mitch Flegg, adding that the company was "delighted" with the strong initial results.

"This additional production means that the Triton hub is now producing at gross rates not seen for the last 10 years.

"This performance is a credit to the outstanding work completed by the Tailwind team, their contractors, and Dana Petroleum E&P, the Triton operator."

At 0844 GMT, shares in Serica Energy were up 4.33% at 265p.

Reporting by Josh White for Sharecast.com.