REG - Serica Energy PLC - North Eigg Drilling Update

Serica EnergyAnnouncement

14/09/2022 07:00

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RNS Number : 3570Z  Serica Energy PLC  14 September 2022

Serica Energy plc

("Serica" or "the Company")

North Eigg Drilling Update

 

London, 14 September 2022 - Serica Energy plc (AIM: SQZ) provides the
following update on the North Eigg exploration well.

 

Drilling operations on the North Eigg exploration well have encountered delays
and, following a recent equipment failure and the required mobilisation of a
replacement (further details below), operations are now expected to take some
six weeks longer to complete than the original schedule.

 

Operations had been progressing successfully despite some drilling delays in
the top-hole sections. During recent preparations for drilling the third
section of the well there was a failure of a vital piece of rig equipment
during routine pre-job testing. A replacement has been sourced and planning is
underway to transport this to the drilling rig.

 

This will have no impact on the ultimate geological outcome of the well and it
is expected that all well costs will benefit from the Investment Allowances
available under the recently introduced Energy Profits Levy.

 

Serica's net well cost after tax is anticipated to increase by approx. £3
million as a result of the delays and it is now expected that results from the
well will be available in December 2022.

 

Mitch Flegg, Chief Executive of Serica Energy, commented:

 

"This high-impact exploration well is the latest in a series of capital
investment projects undertaken by Serica with the objective of increasing our
production in an environmentally sensitive manner. This programme is designed
to help increase the UK's security of supply and reduce its reliance on
imports.

 

The technical delays encountered on this project are extremely frustrating but
do not impact either the chance of success or the significant prospective
volumes of this exploration prospect."

 

Regulatory:

This announcement contains inside information for the purposes of article 7 of
Regulation 2014/596/EU (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

Enquiries:

 Serica Energy plc                                  +44 (0)20 7390 0230
 Tony Craven Walker (Chairman) / Mitch Flegg (CEO)

 Peel Hunt (Nomad & Joint Broker)                   +44 (0)20 7418 8900
 Richard Crichton / David McKeown

 Jefferies (Joint Broker)                           +44 (0)20 7029 8000
 Tony White / Will Soutar

 Vigo Consulting (PR Advisor)                       +44 (0)20 7390 0230
 Patrick d'Ancona / Finlay Thomson                  serica@vigoconsulting.com

NOTES TO EDITORS

Serica Energy is a British independent oil and gas exploration and production
company with a portfolio of UKCS assets.

Serica is the operator of the producing Bruce, Keith and Rhum fields in the UK
Northern North Sea, holding interests of 98%, 100% and 50% respectively, and
holds a 50% operated interest in the producing Columbus field in the UK
Central North Sea. Serica also holds an 18% non-operated interest in the
producing Erskine field in the UK Central North Sea.

Over 85% of Serica's production is natural gas, a key element in the UK's
energy transition.

Further information on the Company can be found at www.serica-energy.com
(http://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.

 

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