5th Dec 2022 10:30
(Alliance News) - Serica Energy PLC on Monday said initial analysis has detected hydrocarbons at the North Eigg exploration well, but commercial quantities have not been established.
The London-based oil & gas company focused on the UK North Sea said well 3/24c-6B was drilled to a total depth of 16,728 feet, discovering 16 feet of hydrocarbon-bearing sands and confirming the presence of hydrocarbons at a deeper depth than the adjacent Rhum field.
Serica will suspend the well pending the results of the analysis, and the determination of whether a sidetrack location can be designed to "better evaluate the volumes of hydrocarbon in this new discovery," the company said. The net post-tax final well cost is likely to be around GBP13 million, Serica said.
"Although the North Eigg exploration well has not delivered the result we had hoped for, it has demonstrated the presence of hydrocarbons and provided a huge amount of high-quality data," Serica Chief Executive Officer Mitch Flegg said.
Serica reported that net production in barrels of oil equivalent per day was up 2.3% to 28,997 in November, from 28,331 in October.
The average market oil price had dropped 1.3% in November, the company said, at USD92.1 per barrel of oil, down from USD93.3 in October. Average monthly gas prices, meanwhile, were up 15% at 119.90 pence per therm, up from 103.90p.
Serica shares were down 6.6% at 296.00p per share on Monday morning in London.
By Harvey Dorset; [email protected]
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