Serica Energy plc, a UK-based independent upstream oil and gas company with a focus on the North Sea and a production portfolio comprising over 85% gas, has released an operational update reflecting its continued development.
Mitch Flegg, Chief Executive Officer of Serica Energy, commented, "I am delighted with the significant progress that Serica has continued to make during 2022. The impact of the substantial investment programmes undertaken in the last three years has seen increased production levels providing responsibly sourced gas to the UK domestic market, protecting security of supply, and reducing the UK’s reliance on imports as part of the transition to a lower carbon future.
Commodity prices have been exceptionally strong during the period with a resulting positive impact on income.
Serica has no debt, limited decommissioning liabilities and with growing cash reserves is well positioned to continue to invest in further projects and other opportunities to add shareholder value. We have just completed a well intervention campaign on Bruce that has boosted net production by over 3,000 boe/d and provides further evidence of the value in Serica’s assets that can be realised through measured and expert operatorship.
Operations have also commenced on the North Eigg exploration well with potential for transformational results, while we are now accelerating further well intervention work on Bruce and Keith following the success of the recently completed campaign.”
Bruce Field light well intervention results
Serica recently completed its inaugural Light Well Intervention Vessel (LWIV) campaign, which concluded safely and without any environmental issues. This campaign aligns with Serica’s strategy to enhance value and extend the operational lifespan of the Bruce facilities.
The first well (Bruce M1) was accessed for the first time since 1998. Following successful scale removal and water shutoff, extensive reperforation and new perforation activities were carried out, leading to a production increase from approximately 400 boe/d to over 1,800 boe/d as of July 2022.
A similar approach was implemented on Bruce M4, where production rose from around 450 boe/d to over 2,400 boe/d. The strong results from both wells surpassed expectations and are expected to positively impact independently assessed reserves. The successful execution of this programme has boosted confidence in the potential of future well interventions.
As capital investment in the Bruce and Keith fields qualifies for investment relief under the UK’s recently introduced Energy Profits Levy, Serica is now fast-tracking additional interventions on other Bruce and Keith wells, both subsea and platform-based.
