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Serica Energy reports 'solid' production; Rhum project delay
StockMarketWire.com
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Oil company Serica Energy said it had achieved 'solid' quarterly production volumes from its assets in the UK North Sea while natural gas prices rose.
The company, however, also said progress on its Rhum field intervention project, which commenced in October, had been slowed by bad weather and technical problems, increasing its cost.
Output 'during the most recent three-month period' from the Bruce, Keith and Rhum fields had averaged 24,100 barrels of oil per day net to Serica.
Net production from the Erskine field averaged 2,200 boe/d giving total net Serica production of 26,300 boe/d.
The company said there had been a 'significant' rise in the price of natural gas, which comprised 80% of its portfolio.
The Rhum intervention delay was due to poor weather conditions that resulted in about 11 days of downtime and the resolution of a technical problem with rig equipment that led to a further 28 days of downtime.
As a result, rig operations would not be completed before late January.
Serica's share of costs associated with the intervention project would increase by some £3 million.
'We are pleased with the performance of our offshore production operations over the past three months, which have also benefited from the significant strengthening of gas prices during that period,' chief executive Mitch Flegg said.
'The delays to the Rhum R3 intervention project are frustrating but do not affect its viability or long-term value.'
'We are not prepared to take shortcuts, despite the slower than hoped progress, as we remain fully committed to a safe execution of the originally planned work scope. An update will be given once rig operations are complete.'
At 9:09am: (LON:SQZ) Serica Energy PLC share price was 0p at 115p
Story provided by StockMarketWire.com
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