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Serica Energy shares fall after production guidance cut

By Frank Prenesti

Date: Tuesday 12 Dec 2017

Serica Energy shares fall after production guidance cut

(ShareCast News) - Shares in Serica Energy fell almost 5% on Tuesday as the company cut full year production guidance as a result of the closure of the Forties North Sea pipeline.
In a statement, Serica said 2017 output would now be around 2,000 barrels of oil per day from its Erskine Field operation.
The Forties pipeline, the export route for Erskine condensate, will be unavailable for weeks, while a hairline crack in the onshore section of the pipeline is repaired by owner Ineos.

In November Serica announced the proposed acquisition of BP's interests in the Bruce, Keith and Rhum fields in the North Sea and associated infrastructure. These assets will also be unable to produce, the company said.

The deal has an effective date of 1 January 2018 and completion of acquisition is expected to take place in mid-2018.

The pipeline shutdown has seen the price of Brent crude oil hit its highest level since June 2015. It also comes as the UK experiences one of its coldest winters.

Serica shares were down 4.82% to 72.10p at 10:08 GMT.

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