16th Jul 2015 10:01
LONDON (Alliance News) - Serica Energy PLC Thursday said production has been around 2,000 barrels of oil equivalent per day net to Serica since production restarted at the Erksine field in the UK North Sea.
Serica holds an 18% interest in the producing North Sea Erskine field, and production from the field restarted after a six month suspension at the end of May. Serica is partners with giants BG Group PLC which holds a 32% stake and Chevron which operates the field with a 50% stake.
Serica purchased its 18% stake from BP PLC in January 2014.
Serica said export rates net to the company from the Erskine field have exceeded 3,000 barrels of oil equivalent per day on a quarter of the days since the re-start and facilities uptime exceeded 83%.
However, the overall average net production to Serica since the end of May has been 2,000 barrels of oil equivalent per day.
Four of the five producing wells are on production, and the fifth well is planned to be brought on to production later in the third quarter following work to release a closed downhole valve, it said.
Production from the field was suspended for six months toward the end of 2014 in an attempt to try to improve downstream facilities and production uptime.
Serica said early indications of the improvements made are "encouraging" but warned further time is needed to fully assess the impact.
"It is the company's intention to work closely with the Erskine field operator to both monitor and improve performance where possible and to seek ways of reducing costs and improve efficiencies," said Serica in a statement.
Serica shares were down 0.9% to 4.96 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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