REG - Serica Energy PLC - Update on Triton FPSO

Serica EnergyAnnouncement

18/02/2025 07:15

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RNS Number : 4278X  Serica Energy PLC  18 February 2025

 

18 February 2025

 

Serica Energy plc

('Serica' or 'the Company')

 

Update on Triton FPSO

 

Serica Energy plc (AIM: SQZ) announces that, as a result of issues resulting
from Storm Éowyn, production from the Triton FPSO has been suspended. During
the storm on 24 January, sea spray triggered the fire and gas detection
system, causing an automatic production shutdown. Following an initially
successful restart on 28 January, it was established that the storm had caused
minor damage to one of the cargo tanks which required repair. While preparing
to conduct the necessary repairs, Dana Petroleum ('Dana') identified an
integrity issue with a coupling in the inert gas line required for purging the
tanks prior to carrying out the repairs. Triton has remained offline
subsequently pending identification of the root cause of the issue and the
best means of resolving it.

 

Serica is supporting Dana in this process including the secondment of its own
representative into the operator's team dealing with this issue.

 

We currently expect that these safety critical repairs will result in the
recommencement of production in mid-to-late March. The extent of annual
maintenance work in the summer, currently scheduled for 40 days, is also under
review. Work continues in parallel on the second gas compressor which, as
previously notified, is on track to be available by the end of Q1.

 

The Triton JV has recently received the final draft of a comprehensive
third-party engineering study, commissioned by the JV to consolidate prior
work, to assess the scope and costs associated with extending the life of the
Triton FPSO to a range of Cessation of Production dates up to 2040. The report
has confirmed that, subject to the continuation of the programme of
maintenance and upgrades, the FPSO has the  potential to continue producing
well into the next decade.

 

The Company's production for January 2025 averaged 37 kboepd, with February
averaging 27 kboepd to date. This has included strong production from the
Bruce Hub into a robust gas market, with February NBP prices averaging
134p/therm, as well as solid contributions from our other assets.

 

The Company's 2025 production guidance is under review, and will be restated
or revised pending further clarity on the timeline and implications for the
necessary Triton activities.

 

Chris Cox, Serica's CEO, stated:

"Given that the Triton FPSO was recovering strongly from the operational
issues of 2024, with material production from new wells, the impact of Storm
Éowyn is deeply frustrating. Safety is of course always the number one
priority, and we fully support the operator's actions in ensuring that this
supersedes other considerations.

 

Recent drilling results illustrate the significant value of proven
hydrocarbons in the Triton area. We will continue working with the operator
and discussing with them at the highest level all options to secure a lasting
improvement in the operating performance of the FPSO."

 

The technical information contained in the announcement has been reviewed and
approved by Fergus Jenkins, VP Technical at Serica Energy plc. Mr. Jenkins
(MEng in Petroleum Engineering from Heriot-Watt University, Edinburgh) is a
Chartered Engineer with over 25 years of experience in oil & gas
exploration, development and production and is a member of the Institute of
Materials, Minerals and Mining (IOM3) and the Society of Petroleum Engineers
(SPE).

 

This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.

-end-

 

Enquiries:

 

 Serica Energy plc                                                         +44 (0)20 7487 7300
 Martin Copeland (CFO) / Andrew Benbow (Group Investor Relations Manager)

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

 Jefferies (Joint Broker)                                                  +44 (0)20 7029 8000
 Sam Barnett / 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 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 (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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