Serica Energy (SQZ)

Sector:

Energy Producers

Index:

FTSE AIM 50

107.20p
   
  • Change Today:
    -4.80p
  • 52 Week High: 143.40
  • 52 Week Low: 103.60
  • Currency: UK Pounds
  • Shares Issued: 267.23m
  • Volume: 118,854
  • Market Cap: £286.47m
  • RiskGrade: 261

Serica Energy gets two UK blocks in out-of-round award

By Josh White

Date: Wednesday 18 Dec 2019

LONDON (ShareCast) - (Sharecast News) - Serica Energy announced on Wednesday that its wholly-owned subsidiary, Serica Energy UK, has received an out-of-round award of a 100% interest in the UK petroleum licence P2501, blocks 3/24c and 3/29c.
The AIM-traded firm said the blocks are located in the area adjacent to the Serica-operated Rhum field.

It said the award contained the HPHT North Eigg and South Eigg prospects.

The primary prospect is North Eigg, which the company said was estimated to contain 360 billion cubic feet at P50, and potentially more than one trillion cubic feet at P10 of recoverable gas.

It said the North Eigg prospect was interpreted to share many geological similarities with the Rhum field.

The prospect was "clearly defined" on 3D seismic, and formed a structural trap sealed against the East Shetland bounding fault.

Serica said it had committed to drilling an exploration well within three years, and in the event of a commercial discovery said it intended to develop the field via a subsea tie-back to the Serica-operated and 98%-owned Bruce facilities.

As well as providing Serica with potentially significant additional reserves, a tie-back to the Bruce platform said it would reduce unit operating costs and extend the economic life of the strategic North Sea infrastructure.

"We are delighted to have received this out-of-round award," said chief executive officer Mitch Flegg.

"Since we completed our acquisition of the Bruce, Keith and Rhum (BKR) assets just over a year ago, our strategy has been to optimise economic returns through a hub strategy that includes operating efficiencies, investment and securing new third-party business in the BKR catchment area.

"Not only is this award an important step in our BKR hub strategy, it reinforces exploration as a material part of Serica's upstream business."

Flegg said they were exploration prospects, and so there was no guarantee of success.

"In the event of a commercial discovery, the optimal development option will be a tie-back to the Bruce platform, which we would seek to fast track.

"In the meantime, our other efforts to enhance the value of the BKR assets will continue unabated.

"These include planning for the rig intervention in 2020 designed to bring the Rhum-3 well into production for the first time and efforts to bring new third-party business to the Bruce facilities."

At 0911 GMT, shares in Serica Energy were up 2.35% at 124.5p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Serica Energy Market Data

Currency UK Pounds
Share Price 107.20p
Change Today -4.80p
% Change -4.29 %
52 Week High 143.40
52 Week Low 103.60
Volume 118,854
Shares Issued 267.23m
Market Cap £286.47m
RiskGrade 261

Serica Energy Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
85.48% above the market average85.48% above the market average85.48% above the market average85.48% above the market average85.48% above the market average
3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average
Price Trend
12.43% below the market average12.43% below the market average12.43% below the market average12.43% below the market average12.43% below the market average
68.32% above the sector average68.32% above the sector average68.32% above the sector average68.32% above the sector average68.32% above the sector average
Income Not Available
Growth
98.99% above the market average98.99% above the market average98.99% above the market average98.99% above the market average98.99% above the market average
93.44% above the sector average93.44% above the sector average93.44% above the sector average93.44% above the sector average93.44% above the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Serica Energy Dividends

No dividends found

Trades for 21-Feb-2020

Time Volume / Share Price
16:35 1,245 @ 107.20p
16:29 594 @ 110.00p
16:29 620 @ 110.00p
16:29 186 @ 109.40p
16:29 437 @ 107.40p

Serica Energy Key Personnel

CEO Mitchell Robert Flegg

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