Serica Energy Wraps Up Multi-Well Drilling Campaign in the North Sea
UK-based upstream oil and gas player Serica Energy is concluding its multi-well drilling campaign and work-over program in the North Sea on a high note. A rig from COSL Drilling Europe has commenced drilling the final well in this campaign on the UK Continental Shelf (UKCS).
The ongoing drilling program has shown promising initial results, with the FPSO Triton producing over 25,000 boepd net to Serica on 23 January 2025. This production was boosted by the success of the first two wells in the five-well Triton drilling campaign, Bittern B6, and Gannet GE05.
Following the completion of drilling activities on the W7Z well on the Guillemot North West field and the EV02 well on the Evelyn field, the COSL Innovator rig has now moved to drill the final well, BE01, on the Belinda field. Initial production from this well is anticipated in early 2026.
Production and Operational Updates
The FPSO Triton receives hydrocarbons from eight producing oil fields, including Evelyn, Bittern, Guillemot West, Guillemot North West, Gannet E, Clapham, Pict, and Saxon. Serica reported a significant increase in 2C resources at the end of 2024, positioning the company for potential reserve growth in the medium term.
Chris Cox, Serica’s CEO, expressed optimism about the drilling campaign’s results but acknowledged production challenges due to ongoing issues at the FPSO Triton. Following discussions with operator Dana Petroleum, maintenance work has been expedited to improve uptime and mitigate production disruptions.
The production from Triton is expected to resume in June, with no further planned shutdowns in 2025. Operational enhancements, including the availability of a second compressor, are anticipated to stabilize production levels. Serica has revised its production guidance for 2025 to 33,000-37,000 boepd.
Strategic Initiatives and Future Prospects
Serica remains focused on capital allocation strategies to maximize shareholder value. The acquisition of Parkmead, pending completion, offers strategic benefits and tax advantages. The company continues to explore M&A opportunities in the UK North Sea and beyond while prioritizing value-accretive projects.
Additionally, Serica is actively pursuing a flare gas recovery project at the Bruce field and monitoring developments at the Buchan Horst project, pending regulatory clarity and environmental assessments.
With a robust organic pipeline and a commitment to prudent capital allocation, Serica Energy is poised for growth and value creation in the competitive energy landscape.