Serica Energy Shares (LON:SQZ) Gain As First Oil from Triton FPSO Announced

Serica Energy shares (LON: SQZ) are trading 1.64% higher this morning, as the company announced the commencement of its first oil lifting from the Triton Floating Production Storage and Offloading (FPSO) unit since production resumed. The announcement signals a key milestone for the company as it executes its production ramp-up plan.

Production is steadily increasing, following the reactivation of wells across several key fields. These include the Bittern field (Serica: 64.6%), Evelyn (Serica: 100%), Gannet E (Serica: 100%), and Guillemot West (Serica: 10%) fields. The sequential bringing online of these wells is crucial to Serica’s output targets.

Over the past two weeks, the Triton Hub has averaged 20,000 barrels of oil equivalent per day (boepd) net to Serica. This figure is anticipated to rise as more wells are brought back online, including productive wells from the Bittern and Gannet E fields. Furthermore, new wells drilled on the Guillemot North West (Serica: 10%) and Evelyn fields are also slated for initial production.

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Prior to the planned maintenance shutdown at the Bruce Hub, Serica’s total portfolio production averaged over 50,000 boepd. The maintenance, which began on August 16th and is expected to last approximately 12 days, will temporarily impact overall production figures.

Serica maintains its production guidance for the year at 33,000 to 35,000 boepd. This target underscores the company’s confidence in its ability to optimize production from its various assets, even with planned maintenance periods. The stock is up +20% YTD.

The successful first oil lifting from the Triton FPSO is likely to be viewed positively by markets. Continued adherence to the production ramp-up plan and the maintenance of annual guidance could provide further support for Serica’s share price.

Serica Energy’s production update indicates positive momentum. The company’s ability to execute its operational plan and maintain production guidance suggests a potentially favorable outlook for the remainder of the year, although the planned maintenance could create short term volatility.