Serica Energy expects its acquisition of a 30% stake in the Buchan redevelopment to materialise this month, soon after the field’s environmental statement was submitted to the regulator.
The UK-based oil and gas firm has announced that it is looking to up production this year as it reports producing 40,000 barrels of oil equivalent per day (boe/d) throughout 2023.
Serica (AIM: SQZ) predicts output will jump to “41,000 boe/d and 48,000 boe/d for the year,” outgoing chief executive Mitch Flegg told shareholders.
Recently, Mr Flegg said he will leave the company after six years at the helm. He will step down after the publication of the company’s 2023 full year financial results, but will remain as an adviser to the company until after its AGM in June.
© Supplied by DCT MediaMr Flegg commented: “Serica’s strategy of investing in its assets continues to be central to our record of consistently achieving high levels of reserves replacement, combined with increased levels of production.
“We are looking forward, therefore, to the start of the four well Triton area drilling programme in March, with the benefits of added production expected to start coming through in the second half of the year.
“During 2024 there is also an extensive programme of interventions in both platform and subsea wells on the Bruce and Keith fields.
“The objectives include re-establishing consistent production from the Keith field.”
Serica’s ‘healthy portfolio’
He turned his attention to the “healthy portfolio” of new projects Serica has, including Buchan.
This is the third-largest upcoming project for the UK North Sea and in January operator NEO Energy submitted environmental documents to the UK Government for the redevelopment of the field that stands 93 miles off the Aberdeen coast.
A redevelopment of a former Repsol Sinopec field in the Moray Firth, Buchan has an estimated 162m barrels of oil equivalent (gross 2C).
Under the plans, NEO will establish a new production hub at the renamed Buchan Horst field using the Western Isles floating production, storage and offloading vessel (FPSO)
© Supplied by NEO EnergyThe Serica boss continued: “In addition, Serica has a healthy portfolio of potential new projects.
“This includes the possible developments of the Buchan and Belinda fields, which offer the prospect of further replacement of produced reserves and incremental production from 2026 onwards.
“Our plans for drilling two Bruce infill wells, the first new wells on the field since 2012, are progressing and, during the next eighteen months, we will be participating in the Parkmead-operated Skerryvore exploration well situated in the UK Central North Sea.
“As a UK taxpayer, Serica will benefit from tax relief for its share of the associated development and exploration costs.”
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