Serica maintains production guidance after summer shutdowns

(Sharecast News) - Serica Energy reported an average recent production of over 52,000 barrels of oil equivalent per day on Wednesday. The AIM-traded firm left its annual guidance unchanged at between 40,000 and 45,000 equivalent daily barrels due to a slower post-summer shutdown production ramp-up.

At the Bruce Hub, Serica said production restarted on 11 September after successful summer shutdown maintenance.

Strong production levels from the Bruce and Rhum fields were achieved, with some production constraints now resolved.

Serica said its Light Well Intervention Vessel (LWIV) campaign had also boosted production.

At the Triton Area, the summer shutdown was completed in September, followed by the 'walk to work' campaign.

Production rate issues were resolved with a well-intervention campaign in the Guillemot fields resulting in production gains.

On the licensing front, Serica said its acquisition of a 30% interest in the Greater Buchan Area from Jersey Oil & Gas was ongoing.

Licence extensions had meanwhile been requested for the Mansell discovery, while documentation for the Kyle discovery was in the final stages.

Serica also recently relinquished licence P2506 due to the absence of viable exploration targets.

Finally, on the organisational front, Serica said the integration of Tailwind was continuing.

Steve Edwards, Dave Freeman, and Tom Ujejski will conclude their roles by March, while Jacques Tohme will support the financial integration.

Martin Copeland would become the chief financial officer early next year, and Mike Killeen would take the role of chief operating officer.

"I am pleased to report the successful conclusion of the planned summer shutdowns on Serica's Bruce and Triton hubs and the re-establishment of strong levels of production at both," said chief executive officer Mitch Flegg.

"I am also pleased to report successful well campaigns on the Bruce and Guillemot fields during 2023."

Flegg said the production levels achieved and the range of organic investment projects undertaken underlined the attributes of the Tailwind acquisition.

"The Tailwind founders will substantially cease their involvement in Serica during the early part of next year."

At 0916 GMT, shares in Serica Energy were down 0.84% at 213.4p.

Reporting by Josh White for Sharecast.com.