SERICA ENERGY PLC Focused On Value
2023 Full Year Results and Outlook
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Annual Results I 24 April 2024 | 2 |
Presenters
Dave Latin
Chairman and Interim CEO
- Appointed to Serica Board in 2021
- Non-ExecutiveChairman since July 2023 and Interim CEO effective 24 April 2024
- Formerly SVP for NW Europe, Africa & Australasia for
OMV - At BP from 1993-2011 in range of executive roles including running the BKR assets
Annual Results I 24 April 2024
Martin Copeland
CFO
- Joined as CFO in February 2024
- 30+ year career in Investment Banking across the energy space including financing and M&A
- Extensive North Sea advisory experience including on some of the most important transactions in the space
- Advised Tailwind on the combination into Serica Energy
3
Introduction
Dave Latin, Chairman and Interim CEO
Annual Results I 24 April 2024 | 4 |
Serica investment case at a glance
- UKCS portfolio focused around two
production hubs
- Balance of oil and gas
- Established North Sea operator
- Production increased to >40 kboe/d
- Reserves more than doubled to 140 mmboe since 2018
- Strong balance sheet provides platform for future growth
- Dividend paying since 2020
- Inaugural share buyback initiated
24 April 2024
Annual Results I 24 April 2024 | 5 |
2023 highlights
Investment | Growth | Returns |
• | Completed acquisition of | • | Production 40.1 kboe/d1 |
Tailwind in March | compared to 26.2 kboe/d in 2022 | ||
• | Successful multi well | • | Net 2P reserves additions of 24 |
intervention campaign on | million boe (179% of produced | ||
Bruce | boe in 20231) |
- EBITDAX £381 million despite average NBP gas price half that in 2022
- Paid dividends of £89 million
- Declared final dividend of 14p per
- Progressed planning for Triton area well campaign in 2024/25
- Increased resource base supports new enlarged debt facility
share making total dividend for year 23p per share
• Acquired interest in potential | • Enhanced capabilities following | • Initiated inaugural £15 million |
Buchan Horst project | integration of Tailwind staff | share buyback |
1. Proforma Serica + Tailwind basis from 1 January-31 December 2023
Annual Results I 24 April 2024 | 6 |
Key operational metrics
2023 | 2022 | Comment | |||||
Production | 40.1 kboe/d1 | 26.2 kboe/d | Addition of Tailwind in 2023 | ||||
Longer than planned summer shutdowns of Bruce and Triton hubs | |||||||
Unit opex | ~US$19/boe2 | US$16/boe | Significant inflationary pressures in offshore costs | ||||
Planned shutdown overruns | |||||||
Reserves Replacement Ratio | 179%1 | 253% | Upward net revisions in both Bruce and Triton hubs | ||||
Workforce fatalities & major | 0 | 0 | |||||
incidents | |||||||
Carbon emissions3 | 179,442 tonnes | 218,567 tonnes | Reduction partially reflects shutdown | ||||
Carbon intensity3 | 16.4 kgCO /boe | 16.4 kgCO /boe | UKCS average 19.8 kgCO /boe (2022)4 | ||||
2 | 2 | 2 | |||||
1. | Proforma Serica + Tailwind basis from 1 January - 31 December 2023 | ||||||
2. | Adjusted proforma Serica + Tailwind basis from 1 January-31 December 2023 | ||||||
3. | Bruce hub only (Serica's other operated assets are tie-backs to hosts operated by others | ||||||
4. | NSTA Emissions Monitoring Report 2023 | ||||||
Annual Results I 24 April 2024 | 7 | ||||||
Reserves replacement across the portfolio
Proforma Net Proven and Probable Reserves1
140 | |||||||||
2 | 5 | 7 | |||||||
9 | 19 | 49 | |||||||
5 | |||||||||
120 | 7 | ||||||||
49 | |||||||||
100 | |||||||||
mmboe | 80 | ||||||||
84 | |||||||||
72 | |||||||||
60 | |||||||||
40 | |||||||||
20 | |||||||||
0 | |||||||||
01-Jan-23 | Production | Revisions | 31-Dec-23 | ||||||
Bruce Hub | Triton Hub | Other | |||||||
Annual Results I 24 April 2024
-
Reserves estimate based on independent Competent Person's
Report - Balance of oil and gas
- 179% reserves replacement ratio2
- Upward revisions include
- Bruce infill well
- Bruce well intervention campaign
- Rhum gas compression project
- Belinda field development
- Proforma based on Serica + Tailwind portfolios from 1 January - 31 December 2023
- Revisions / production
8
Maintaining strong production
Serica + Tailwind Portfolios Average Net Weekly Production (boe/d)
Completion of Tailwind acquisition
Annual Results I 24 April 2024
- 2024 YTD1 production about 45,400 boe/d
- 2024 production guidance narrowed to
41-46,000 boe/d - Triton drilling campaign slipped to April 2024 start
- Erskine production restarting after unplanned shut-in
- Outturn for 2024 will reflect
- Results of Triton drilling campaigns and Bruce well work
- Planned summer shutdown on Triton
- Estimated 2025 production range same as 2024 at 41-46,000 boe/d
- Assumes Belinda production start 1Q 2026
1. 1 January - 14 April 2024
9
2024 well programme underway
Field | Activity | Serica interest | 2024 | 2025 | |||||||||||||||||||||||||||||
Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | June | |||||||||||||||||||
Bruce | Well work | 98.00% | |||||||||||||||||||||||||||||||
Keith | Well work | 100.00% | |||||||||||||||||||||||||||||||
Bittern | B1z sidetrack | 64.63% | |||||||||||||||||||||||||||||||
Gannet E | GE-05 well | 100.00% | |||||||||||||||||||||||||||||||
Guillemot NW | EC1 well | 10.00% | |||||||||||||||||||||||||||||||
Evelyn | EV02 well | 100.00% | |||||||||||||||||||||||||||||||
Belinda | BE01 | 100.00% | |||||||||||||||||||||||||||||||
Indicative duration | Potential commencement of incremental production | Timetable subject to variation for operational reasons; e.g. weather | |||||||||||||||||||||||||||||||
- Bruce well work and Bittern B1z sidetrack in progress
- Serica sanctioned Belinda development utilising COSLInnovator to drill development well
- Belinda 1st oil planned 1Q 2026
- Capital expenditure in 2024 (cash spent) estimated at about £170 million before tax relief based on sanctioned projects previously disclosed plus up to £25 million on newly sanctioned Belinda project
Annual Results I 24 April 2024 | 10 |
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Serica Energy plc published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 06:07:07 UTC.
