Serica Spuds Central North Sea Well

UK AIM-listed operator Serica Energy has spudded the Columbus 23/16f-CDev1 development well in the UK Central North Sea, it said March 17. The well will be drilled to a total depth of 17,600 ft and include a 5,600-ft horizontal section. The Maersk Resilient jack-up is expected to take around 70 days to drill it.

Columbus is 35 km northeast of the Shearwater production facilities and its estimated proven+probable reserves of 14mn barrels of oil equivalent will flow into the existing Arran-Shearwater pipeline along with Arran output.

At the Shearwater platform, the gas and liquids will be separated and the gas exported through the Segal line to the St Fergus beach terminal and the liquids to Cruden Bay. Production is expected to start in early Q4, with average gross production forecast to be around 7,000 boe/d, of which over 70% is gas.

Serica has 50% in this "low-risk development" that it says offers attractive returns. Its partners are Waldorf Production and Tailwind Mistral (each with 25%). Waldorf said earlier this month it has bought upstream stakes from Cairn, which join its Ithaca Oil & Gas assets in the central North Sea.

CEO Mitch Flegg said the start of drilling marked "a significant milestone for the company as Columbus is the first development project that Serica has undertaken as operator in the North Sea. We have worked closely with our partners and with infrastructure owners to design a cost-effective development which minimises environmental impact through, among other things, the extensive use of pre-existing infrastructure." Serica's other UK projects include the ongoing work at Rhum R3 and next year's North Eigg exploration well.