London, 31 October 2018 – Serica Energy plc (AIM: SQZ) is pleased to announce that the Oil and Gas Authority (OGA) has approved the Field Development Plan (FDP) for the North Sea Columbus Development which was submitted for approval in June of this year. Peak production is expected to be 7,800 gross barrelsof oil equivalent (“boe”) per day. Best Estimate Gross (2C) Contingent Resources have been calculated to be 13.4 million boe.
The Columbus Development is located in Blocks 23/16f and 23/21a Columbus Sub Area in the UKCS Central North Sea. The Development Area will be drained by a single well, which will be connected to the recently approved Arran-Shearwater pipeline, through which Columbus production will be exported along with Arran field production. When the production reaches the Shearwater platform facilities, it will be separated into gas and liquids and exported to terminals onshore. Columbus development timing is dependent on the Arran-Shearwater pipeline being tied into the Shearwater platform in Q3 2020. Columbus start-up is targeted for mid-2021.
OGA approval of the FDP was subject to a number of statutory requirements, including the submission of an Environmental Statement, which was approved by the Department for Business, Energy & Industrial Strategy at the beginning of October.
Serica is operator of the Columbus Development with a 50% interest. Other participants are EOG Resources United Kingdom Limited and Endeavour Energy UK Limited, each holding a 25% interest.
Mitch Flegg, Chief Executive of Serica Energy, commented:
“I am delighted that Serica and its partners are able to announce that development and production consent has been received for Columbus. The project team have worked closely with the OGA and the host infrastructure owners since the Field Development Plan was submitted in June 2018 to achieve this successful outcome. The development is important in its own right and will also enhance our understanding of nearby exploration acreage which was secured by Serica in the UK 30th Licence Round."
Andy Samuel, Chief Executive, Oil and Gas Authority, commented:
“We are pleased with the decision by Serica and partners, EOG Resources and Endeavour Energy, toproceed with their investment in the Columbus development.
Columbus is the final component of the OGA's Central Graben Area Plan, which also included the recently sanctioned Fram and Arran fields, unlocking over 50 million boe recoverable reserves which had struggled for decades to be developed.
It is good to see how the industry has collaborated on many fronts to deliver additional value as part of our Maximising Economic Recovery in the UK agenda and we look forward to Columbus delivering firsthydrocarbons in 2021.”
The technical information contained in the announcement has been reviewed and approved by Clara Altobell, VP Technical at Serica Energy plc. Clara Altobell (MSc in Petroleum Engineering from Imperial College, London) has over 20 years of experience in oil & gas exploration, production and development and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).