Increased production from Chevron's high-pressure, high-temperature Erskine field has helped boost profits and reserves for UK independent Serica Energy.
The firm acquired an 17% stake in the field, at a time when it was expected to produce 2100 boe/d net to Serica at $30/bbl operating costs. However, it has been producing 3000 boe/d net to Serica, at $20/bbl operating costs, and an independent reserves assessment has seen its remaining reserves increased by 50% to 4.2 MMboe.
Erskine is currently shut-in, however, following a pigging operation on the pipeline between the Lomond and Everest facilities, which hit a wax deposit. Restart may now be deferred until after a planned two-month mid-year Lomond maintenance shut down is completed.
Serica acquired the 18% in Erskine interest hoping it would help it in its aim to get its nearby Columbus field developed. The firm has been looking for an export route for the field for some years. It had been looking at a tie-in to the Lomond platform, operated by BG Group, but the plan fell through. Erskine, which is produced via a small platform, which exports via Lomond, could help Serica unlock Columbus.
Furthermore, Serica has increased its own interest in Columbus, from 33.2% to 50%, which means the ownership interests have been simplified, potentially paving the way to a development solution for the field.
Meanwhile, Serica is still targeting exploration drilling in the North Sea. The firm says it is targeting drilling on the Rowallan and Doyle prospects, in blocks 22/18c and 113/22 respectively, in 2017-18.