Serica Energy Share News (SQZ)

(Sharecast News) - UK North Sea-focussed upstream oil and gas company Serica Energy announced successful flow test results from the Columbus development well on Tuesday, reporting that the well was drilled to a measured depth of 17,600 feet, with a horizontal section of more than a mile in length in the Forties Sandstone formation.
The AIM-traded firm said completion equipment was successfully installed into the well, and a flow test had now been performed.

A stabilised flow rate of 38.0 million standard cubic feet of gas per day, and 1,560 barrels of condensate per day, had been achieved through a 56/64th-inch choke.

That rate was at the upper end of the pre-drill range of expected outcomes, and was constrained by the surface well test equipment on board the Maersk Resilient heavy-duty jack-up drilling rig.

A diving support vessel (DSV) would tie the subsea wellhead into the Arran Field export system directly after the rig leaves the location.

It was expected that Columbus start-up would occur in the fourth quarter, once initial flow from the Arran field had reached stable conditions.

Once it has been brought on stream, it was anticipated that the Columbus well would produce at around 7,000 barrels of oil equivalent gross per day, of which at least 75% was expected to be gas.

Columbus was discovered by Serica in 2006, with Serica having a 50% interest and acting as operator throughout the exploration, appraisal and field development stages.

It had developed the field with its partners Waldorf Production UK and Tailwind Energy.

Minimal subsea equipment had been installed to enable tie-in of the Columbus well to adjacent infrastructure, thus minimising environmental impact and carbon dioxide emissions, the board said.

That was consistent with the company's stated objective of reducing the carbon intensity of its production operations.

"We are delighted to have achieved the objectives of this challenging but ultimately very successful campaign," said chief executive officer Mitch Flegg.

"This is a significant milestone for Serica, demonstrating our ability to successfully lead a development project as well as being a proven efficient production operator.

"Columbus is part of Serica's ongoing capital investment programme which is aimed at boosting production in the second half of this year and beyond."

At 0944 BST, shares in Serica Energy were up 2.95% at 153.6p.