29 October 2024
Serica Energy
plc
("Serica" or "the
Company")
Update on Triton
FPSO
Serica Energy plc (AIM: SQZ)
announces that production via the Triton FPSO has been interrupted
owing to a problem with the single gas compressor in
operation.
A potential dry gas seal failure was
identified in the 'A' gas compressor during operations on 26
October. This did not result in a leak of hydrocarbons. The FPSO
operator, Dana Petroleum, is working to identify and execute the
necessary repair.
As indicated in the announcement of
2 October, the Company's ability to maintain full year production
guidance of towards the bottom of the 41,000 to 46,000 boepd range
was dependent on sustained production levels of around 50,000 boepd
in Q4. Given the outage of production from Triton, Serica's
production for 2024 is now expected to be slightly below this
previous guidance.
As previously stated, actions are
being taken to reduce the operational vulnerability of the Triton
FPSO by bringing the second compressor into service. The date for
this is likely to be delayed by the corrective work on the 'A'
compressor and is now expected to be in Q1 2025.
Production from Serica's other
assets is currently in line with expectations, with cash flow aided
by the recent level of gas prices. The average month to date market
gas price is 97.9 pence per therm, the strongest so far in
2024.
Serica will issue a trading and
operations update in mid-November, by which time production on the
Triton FPSO is expected to have resumed. The addition of production
from the GE-05 well on the Gannet field (SQZ: 100%) is expected
shortly after the resumption of production.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of
MAR.
-end-
Enquiries:
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Serica Energy plc
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+44 (0)20 7487 7300
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Martin Copeland (CFO) / Andrew Benbow
(Group Investor Relations Manager)
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Peel
Hunt (Nomad & Joint Broker)
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+44 (0)20 7418 8900
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Richard Crichton / David McKeown /
Emily Bhasin
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Jefferies (Joint Broker)
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+44 (0)20 7029 8000
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Sam Barnett / Will Soutar
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Vigo
Consulting (PR Advisor)
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+44 (0)20 7390 0230
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Patrick d'Ancona / Finlay
Thomson
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serica@vigoconsulting.com
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NOTES TO EDITORS
Serica Energy is a British independent
oil and gas exploration and production company with a portfolio of
UKCS assets. Serica has a balance of gas and oil production. The
Company is responsible for about 5% of the natural gas produced in
the UK, a key element in the UK's energy transition.
Serica's producing assets are focused
around two main hubs: the Bruce, Keith and Rhum fields in the UK
Northern North Sea, which it operates, and a mix of operated and
non-operated fields tied back to the Triton FPSO. Serica also has
operated interests in the producing Columbus (UK Central North Sea)
and Orlando (UK Northern North Sea) fields and a non-operated
interest in the producing Erskine field in the UK Central North
Sea.
Serica has a two-pronged strategy for
growth comprising investment in its existing portfolio and M&A.
Further information on the Company can be found
at www.serica-energy.com.
The Company's shares are traded on the AIM market of the London
Stock Exchange under the ticker SQZ and the Company is a designated
foreign issuer on the TSX. To receive Company news releases via
email, please subscribe via the Company website.