Drilling Rig Contracted for Rhum-3 Intervention
Serica Energy plc
("Serica" or the "Company")
Drilling Rig Contracted for Rhum-3 Well Intervention
London, 12 May 2020 - Serica Energy plc (AIM: SQZ) is pleased to announce that it has entered into a contract for the provision of a drilling rig for the intervention work on the Rhum-3 ("R3") well on behalf of the Rhum partners.
The work will be carried out using the Awilco Drilling's WilPhoenix, a 3rd-Generation, Enhanced Pacesetter, harsh-environment, mid-water, semi-submersible drilling rig. It is expected that operations will commence in the 4th quarter of 2020 and last approximately 70 days.
The work programme will involve recovering debris left in the well by the previous operator and removing an obstruction that is believed to be in place across parts of the downhole completion. The well will then be recompleted and put into production. R3 is already connected to the subsea production infrastructure.
Serica has assessed the potential for COVID-19 related matters to impact the availability of equipment and or personnel and has determined that there are currently no related issues that will prevent the execution of this project.
Mitch Flegg, Chief Executive of Serica Energy, commented:
"We are delighted that this work will proceed in 2020.
With a strong balance sheet, no debt and limited decommissioning liabilities, Serica is well-placed to weather the wider industry downturn related to COVID-19 and low commodity prices. This resilient position is enabling us to also continue with our previously stated work programmes.
Bringing the R3 well into operation will increase the production capacity of the Rhum field and will also improve the expected ultimate recovery of reserves. Having three rather than two wells will also provide more flexibility in the management of the field."
Additional Information
Rhum is a gas condensate field producing from two subsea wells, R1 and R2, tied into the Bruce facilities through a 45km pipeline. Rhum production is separated into gas and condensate and exported to St Fergus and Grangemouth respectively along with Bruce and Keith production. These wells are capable of producing at combined rates approaching 30,000 boe/d (gross), of which over 95% is gas. The field has produced at relatively constant rates with limited reservoir decline evident through the past year. Average Rhum production from the two wells in 2019 was 13,775 boe/d net to Serica's 50% field interest.
A third well, R3, requires intervention work before it can be brought on production. In 1H 2019, investigative work to assess the condition of the well and associated control systems was successfully carried out and the data gathered has been incorporated into planning for the R3 intervention.
Regulatory
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
The technical information contained in the announcement has been reviewed and approved by Clara Altobell, VP ESG and Business Innovation at Serica Energy plc. Clara Altobell (MSc in Petroleum Engineering from Imperial College, London) has over 20 years of experience in oil & gas exploration, production and development and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
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NOTES TO EDITORS
Serica Energy is a British independent oil and gas exploration and production company with exploration, development and production assets in the UK and exploration interests offshore Namibia.
Serica is the operator of the producing Bruce, Keith and Rhum fields in the UK Northern North Sea, holding a 98% interest in the Bruce field, a 100% interest in the Keith field and a 50% interest in the Rhum field.
Serica holds an 18% non-operated interest in the producing Erskine field in the UK Central North Sea and a 50% operated interest in the Columbus field for which development has been approved by the OGA and has commenced.
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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