Serica Energy provides year-end operations update

On Jan 10, 2017

Serica Energy, an independent oil and gas company with production, development and exploration licence interests in the UK North Sea and exploration interests in Ireland, Morocco and Namibia, is please to provide a year-end operations update as follows:

Highlights:

UK North Sea Erskine Field

Strong production since late August field restart averaging 3,150 boepd net to Serica, ahead of guidance
December production average over 3,800 boepd net to Serica at improved commodity prices
Lomond offtake facilities achieved uptime in excess of 80% since end August restart and averaged 95% in December
New Lomond operator continues to drive costs down and improve reliability

Columbus Development

Serica working with other hub partners to maximise economic recovery from the area
Development plan for Columbus targeted for 2017
Improved facilities performance increasing confidence in Lomond as potential off-take route

Exploration

Preparations in progress for Rowallan drilling in 2018. Long-lead items planned for 2017
Costs of Rowallan and Doyle wells carried by third parties
Expected extension of Namibian licence will afford more time to conclude a farm-out
Renewed industry interest in Ireland

Finance

Cash balance of US$16.6 million as at 31 December expected to increase to over US$20 million after receipt of December net sales
Cash resources enhanced by strong production and much improved commodity prices
No borrowings or material capital commitments

Tony Craven Walker, Serica’s Chairman commented:

‘A strong second half operational performance from the Erskine field, boosted by much improved commodity prices and favourable exchange rate movements, has helped Serica following the six-month Erskine shut-in earlier in the year. The underlying resilience of Serica’s balance sheet has allowed the Company to absorb the period of no income resulting from the shut-in and to enter 2017 in a strong position to take advantage of new opportunities to grow its asset base.’