Serica Energy (LSE:SQZ) has reported a slower-than-anticipated progression to steady-state output at the Triton FPSO following its July restart. The hold-up is primarily due to complications with the gas lift system alongside some additional minor maintenance requirements. Production is expected to stabilize by August as these issues are resolved.
Looking ahead, the company expects steady production contributions from the Bittern, Evelyn, and Gannet fields, with further output increases anticipated from newly drilled wells in the Guillemot North West and Evelyn areas. Despite this temporary setback, Serica continues to maintain strong output from its other assets and projects a potential total production exceeding 55,000 barrels of oil equivalent per day (boepd) once all Triton-related fields reach full operation. Consequently, Serica has slightly revised its 2025 production forecast to a range of 33,000–35,000 boepd.
Investment Outlook
Serica Energy offers an appealing investment profile supported by a healthy balance sheet, favorable valuation, and recent positive corporate developments. Nevertheless, ongoing challenges with revenue consistency and margin pressures introduce some caution. Technical indicators suggest a steady price movement, reinforcing a broadly positive investment outlook.
About Serica Energy
Serica Energy is a UK-based independent oil and gas company focused on exploration and production within the UK Continental Shelf (UKCS). It accounts for around 5% of the UK’s natural gas production, playing a notable role in the country’s energy transition efforts. The company’s core operations revolve around key hubs including the Bruce, Keith, and Rhum fields in the Northern North Sea, as well as multiple fields connected to the Triton FPSO. Serica also holds interests in the Columbus and Orlando fields and a non-operated stake in the Erskine field.
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