Serica Energy has announced the results of the independent(1) estimates of oil and gas reserves for each of the Serica and Tailwind groups of companies as at 31 December 2022.
Mitch Flegg, Chief Executive of Serica commented:
'These independent estimates are a testament to the activities undertaken by both Serica and Tailwind in recent years to enhance the recovery of hydrocarbons from their respective fields, to extend the productive lives of the Bruce and Triton production hubs and to meet the objectives of the North Sea Transition Deal. All the reserves additions reported today are associated with fields that are already producing and, therefore, do not depend on new field development consents or the installation of new infrastructure.
Following the acquisition of Tailwind, Serica is a top 10 producer in the UKCS and a significant contributor to the UK’s energy security.'
The main features of the reserves estimates for the combined portfolios reported today are as follows:
• Pro-forma Proved plus Probable ('2P') reserves of 130.4 mmboe(2) as at 31 December 2022 compared to 104.0 mmboe as at 31 December 2021.
• Net upward reserves revision more than three times amount produced in 2022(3).
• Near even split of reserves between oil and gas. Approximately 58% of combined production from the two portfolios in 2022 was gas.
• Upwards revisions due to maturation of contingent resources to 2P reserves following sanction of four infill wells in Triton area fields and well work on Bruce field, commencement of planning for Bruce infill drilling and extension of production from both the Bruce and Triton hubs from 2030 to 2035.
• Downward revisions in 2P reserves associated with the Columbus field (poor well performance) and the Orlando field (possible cessation of service from Ninian host facility at the end of 2026).
- The reported estimates are based on independent reports prepared by RISC Advisory for Serica and ERCE for Tailwind in accordance with the reserves definitions guidelines defined in SPE Petroleum Resources Management System 2018.
- In the reserves report for Serica, oil equivalent values are based on a conversion of 6.0 mscf per 1 boe for reporting and comparison purposes. As the actual calorific values of gas produced vary, the amounts for each field and the total amounts reported here may not convert precisely. For consistency, Serica has applied the same conversion factor to the gas volumes reported in cubic feet by ERCE.
- On a combined pro-forma basis, 2022 revision / production in 2022 = 311%
- The reported 2021 figures are considered Technically Recoverable Reserves as no Economic Limit Test was conducted by ERCE for year end 2021
Source: Serica Energy
