Serica Energy upbeat on latest reserve estimates

5th Apr 2023 13:28

(Sharecast News) - Serica Energy announced the results of independent estimates of oil and gas reserves for both the Serica and Tailwind groups of companies on Wednesday, as at 31 December.

The AIM-traded firm said the results showed that there had been a net upward revision in reserves of more than three times the amount produced in 2022.

It said the estimated combined portfolios of Serica and Tailwind had proved plus probable (2P) reserves of 130.4 million barrels of oil equivalent as at the end of 2022, compared to 104.0 million barrels as on 31 December 2021.

The reserves were split almost evenly between oil and gas, with about 58% of the combined production from the two portfolios in 2022 being gas.

Serica said the upward revisions were due to the maturation of contingent resources to 2P reserves, after the sanction of four infill wells in Triton area fields and well work on the Bruce field.

Additionally, the company had started planning for Bruce infill drilling and extended production from both the Bruce and Triton hubs from 2030 to 2035.

However, there were some downward revisions in 2P reserves associated with the Columbus field due to poor well performance, and the Orlando field due to the possible cessation of service from Ninian host facility at the end of 2026.

"These independent estimates are a testament to the activities undertaken by both Serica and Tailwind in recent years to enhance the recovery of hydrocarbons from their respective fields, to extend the productive lives of the Bruce and Triton production hubs and to meet the objectives of the North Sea Transition Deal," said chief executive officer Mitch Flegg.

"All the reserves additions reported today are associated with fields that are already producing and, therefore, do not depend on new field development consents or the installation of new infrastructure.

"Following the acquisition of Tailwind, Serica is a top 10 producer in the UKCS and a significant contributor to the UK's energy security."

At 1307 BST, shares in Serica Energy were up 3.29% at 235.51p.

Reporting by Josh White for Sharecast.com.