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Next stop 15p.

14.25p =

Serica issues SQZ Erskine operational update

Serica Energy said re-commencement of the full, continuous production of Erskine has been delayed.

As previously announced, production from the Erskine field (Serica 18%) restarted on July 27 following a prolonged period to clear a blocked pipeline and undertake planned maintenance on the Lomond platform which provides treatment and export facilities to Erskine.

In line with earlier statements, Erskine production was built up for a short period to flush the Lomond/Everest condensate export line and establish full flow through the system before being temporarily suspended for final clean-up operations and for re-commissioning of Lomond platform facilities to be completed.

Initial field production rates of over 4,300 boepd net to Serica were achieved in this period, supporting the capability of the Erskine reservoir and Erskine wells to deliver at high rates.

Shell as operator of the Lomond platform, has now advised that re-commissioning of the Lomond export facilities, which was expected to take one week, has taken longer than projected and that further work is required on the main Erskine condensate export pump, located on Lomond, before it can be brought fully on-line.

"As a result, re-commencement of full, continuous production of Erskine has been delayed," the company said.

A further operational update will be released by the Company when advice has been received from Shell that these re-commissioning issues have been resolved. The Company has been advised by Shell that this is likely to take several more days.
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Oil price on the way down again after reaching intraday high last Friday at $51.22. There is some support at $48.50 for Brent

BRENT crude chart

Broken 15p finally.

Top performer today.

23p to buy 30p is more reasonable in 2017 given the monthly cash generation.

Impressive performance today with quarterly results due soon this will in the 30's .

Serica eyes BP gas apparently.

Supper results from Serica, keeping the production at the same level when expecting it would higher, has dented apetite for the stock. Nevertheless well undervalued by the profitt and cash no debt.


SQZ 27p - 0.50p

Serica reports $10.3m profit

Serica Energy made a profit after tax of US$10.3 million in the first half, compared with loss of US$2.8 million the year before.

Sales revenues were US$21.9 million, up from US$5.7 million a year ago, at average realised prices of US$51.5/bbl for oil and approximately 42 p/therm for gas.

Cash and short-term deposits increased to US$30.7 million with zero debt.

Erskine full-year production guidance has been maintained at 2,200-2,400 boepd net notwithstanding the suspension of production in August/September for facilities and pipeline maintenance.

Production re-started on 22 September 2017 achieving rates of approximately 2,500 boepd net to Serica from three wells.

Tony Craven Walker, Serica's chairman, said: "Serica has produced a strong set of first half results and, although production to-date in the second half has been reduced to resolve various pipeline and maintenance issues, our production guidance for the full-year remains in the 2,200-2,400 boepd net range. We are now entering the winter months in the northern hemisphere, when hydrocarbon prices are traditionally stronger and this helps to underpin our financial performance.

"With this strong financial position Serica is well placed to take advantage of new opportunities to grow both through our existing portfolio and through acquisition in the UK North Sea, where our demonstrated capability and experience give us a competitive edge and where we continue to benefit from tax efficiencies. We have adopted a keen but measured approach to this potential and are currently actively reviewing a small number of value accretive opportunities that match our strategic objectives."

Impressive chart rebound from the lows.