Serica Energy boosted by North Sea results

Serica Energy Plc has seen its shares flare up after a positive update from its Rhum gas field in the North Sea.

The third well on the site has successfully produced a flow test with results at the upper end of expectations.

It said the flow rate was constrained by the surface well test equipment on board the WilPhoenix semi-submersible drilling rig, and it expected the well to produce at higher rates when in it came into production.

A diving support vessel has been contracted to install the subsea control equipment required so the well can start producing in the third quarter of 2021.

Chief executive Mitch Flegg said: "Operations on R3 have proved more challenging than expected but the skill and dedication of our operational team has enabled us to achieve this welcome result. The volumes flowed during the test are equivalent to over 10,000 barrels of oil equivalent per day which demonstrates the quality of the Rhum asset.

"It was always expected that the flow test results would be constrained by the surface test equipment, but initial analysis of the data recovered indicates that the flow potential of the well is at the upper end of our range of expectations.

"The third Rhum well will enable enhanced production rates from the field and will provide redundancy to support production from the other two Rhum wells."

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