Serica Energy provides operations update

Serica Energy said a strong second-half operational performance from the Erskine field, boosted by much improved commodity prices and favourable exchange rate movements, has helped the company after 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," said chair Tony Craven Walker.

Serica has provided a year-end operations update as follows:

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