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Serica Energy advances as Sea production beats expectations

Serica Energy said that production has been strong since late August.
oil barrels in a stack
Production beat expectations

Serica Energy Plc (LON:SQZ) shares rose 19% on Tuesday after the North Sea oiler’s positive operations update showed production ahead of expectations.

The company said that production has been strong since late August, after the restart of the Erskine field, and output has averaged 3,150 barrels oil equivalent per day.

In December the rate amounted to 3,800 boepd, and the company highlighted that it also benefitted from better oil prices through the end of the year too.

Serica told investors that it ended December with US$16.6mln cash balance, and it expects to have more than US$20mln after the month’s sales receipts.

"A strong second half operational performance from the Erskine field, boosted by much improved commodity prices and favourable exchange rate movements, has helped Serica following the six-month Erskine shut-in earlier in the year,” said Tony Craven Walker, Serica chairman.

“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."


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