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:
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Serica Energy
plc
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+44 (0)20 7487
7300
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Martin Copeland (CFO) / Andrew Benbow (Group
Investor Relations Manager)
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Peel Hunt
(Nomad & Joint Broker)
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+44 (0)20 7418
8900
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Richard Crichton / David McKeown / Emily
Bhasin
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Jefferies
(Joint Broker)
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+44 (0)20 7029
8000
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Sam Barnett / Will Soutar
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Vigo
Consulting (PR Advisor)
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+44 (0)20 7390
0230
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Patrick d'Ancona / Finlay Thomson
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serica@vigoconsulting.com
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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.
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.
