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Serica Energy PLC on Monday said initial analysis has detected hydrocarbons at the North Eigg exploration well, but commercial quantities have not been established.
The London-based oil & gas company focused on the UK North Sea said well 3/24c-6B was drilled to a total depth of 16,728 feet, discovering 16 feet of hydrocarbon-bearing sands and confirming the presence of hydrocarbons at a deeper depth than the adjacent Rhum field.
Serica will suspend the well pending the results of the analysis, and the determination of whether a sidetrack location can be designed to ‘better evaluate the volumes of hydrocarbon in this new discovery,’ the company said. The net post-tax final well cost is likely to be around £13 million, Serica said.
‘Although the North Eigg exploration well has not delivered the result we had hoped for, it has demonstrated the presence of hydrocarbons and provided a huge amount of high-quality data,’ Serica Chief Executive Officer Mitch Flegg said.
Serica reported that net production in barrels of oil equivalent per day was up 2.3% to 28,997 in November, from 28,331 in October.
The average market oil price had dropped 1.3% in November, the company said, at $92.1 per barrel of oil, down from $93.3 in October. Average monthly gas prices, meanwhile, were up 15% at 119.90 pence per therm, up from 103.90p.
Serica shares were down 6.6% at 296.00p per share on Monday morning in London.
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