14th Dec 2015 08:51
LONDON (Alliance News) - Oil and gas company Serica Energy PLC on Monday saw its shares rise after it said its performance had been strong through the end of November, with production increasing.
Shares in Serica were up 5.2% to 8.0301 pence.
Serica said it produced an average of 3,300 barrels of oil equivalent per day net in October and November, up from 3,100 barrels from July through to September. The group said it has seen encouraging production from the Erskine field in the North Sea and improved operations at the Lomond processing facilities compared to the first half.
The group said its operating costs are currently below USD20 per barrel at current production rates and said it is maintaining a tight control over its cost base. It said that in early October it purchased hedging options with USD35 and USD40 floor prices for 500 boepd until June 2016.
Serica also noted that half of its Erskine gas production to September 2016 is sold under pre-determined pricing, which mitigates market volatility.
"During this severe industry downturn Serica has managed to improve its asset mix and its financial resilience, creating a position of strength relative to many of its peers," said Chairman Tony Walker.
By Sam Unsted; [email protected]; @SamUAtAlliance
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