Serica Energy PLC · LSE:SQZ
Serica Energy — Corporate Update (January 2020)
29 slides from Serica Energy's corporate update, January 2020
Slide 1: Corporate Update January 2020
Corporate Update NEW IMAGE HERE January 2020
Slide 2: Disclaimer
Disclaimer • This document is personal to the recipient and has been issued by Serica Energy plc • Certain statements, beliefs and opinions in this document, are forward-looking, and is directed only at, in the United Kingdom, qualified investors who are persons (the "Company"). This document does n
Slide 3: Summary
Summary • Serica has established itself as a leading mid-tier oil and Oil gas producer 20% • We have created a strong corporate culture committed to safe and environmentally conscious operations whilst also driving increased operating efficiencies • Production has been increased on Bruce, Keith and
Slide 4: 2019 – A Year of Achievement
2019 – A Year of Achievement A British-based independent upstream oil and gas company with operations centred on the UK North Sea with a full range of exploration, development and production assets NET PRODUCTION GROSS OPERATED PRODUCTION 30,000boe/d Estimated FY 2019 from Bruce, Keith, Rhum & Erski
Slide 5: 2019 Production Increased by 13%
2019 Production Increased by 13% Continued strong production (all figures net to Serica) ERSKINE BKR FY 2019 FY 2019 27,300 2,700 boe/d boe/d Total Net FY 2019 daily production is 13% higher than FY 2018 results (FY 2018: 26,600 boe/d on a like-for-like basis) Daily production FY 2019: 30,000 boe/d
Slide 6: Serica is now a Leading Independent Producer on the UKCS
Serica is now a Leading Independent Producer on the UKCS • Following its acquisitions of various interests in the Bruce, Keith and Rhum fields, Serica has become a major player in the UKCS with average net production of ~30 kboe/d, compared with 2 kboe/d prior to the acquisitions 200 Operator Partne
Slide 7: Serica is the 10th Largest Independent Operator on the UKCS
Serica is the 10th Largest Independent Operator on the UKCS • As operator of BKR, Serica was responsible for operating over 40,000 boe/d of gross production in 2019 180 160 140 UKCS ranking of gross operated production* 120 (2020e, kboe/d, excludes majors and NOCs) 100 80 60 40 20 - * Source: Wood M
Slide 8: Cash Position
Cash Position • Unaudited 31 December 2019 cash, cash Continuing cash build equivalents and term deposits totalled £101.8 million (this compares with £43.1 million at 31 Cash, cash equivalents and term deposits December 2018) £ million 120 Total cash £101.8 million • During 2019 the entire gas prepa
Slide 9: Financial Responsibility
Financial Responsibility • At the time of entering into the BKR transaction with BP, Serica purchased ‘put’ options* at 35p to cover 60% of the retained gas production, after net cash flow sharing, purchased from BP for 2018 and 2019 and 40% of retained production for the first half of 2020 • Since
Slide 10: Environment
Environment Gas Production Carbon Intensity Flaring Over 80% of our production is natural gas, which Preliminary data shows a FY 2019 BKR Carbon Initial data indicates 2019 BKR flaring to be 30% has significant environmental advantages over Intensity of around 18,000 Tonnes CO2/million boe lower tha
Slide 11: What's next operationally?
What’s next operationally? 2019 has been a year of strong performance which has established Serica as one of the leading independent UKCS operators • BKR production levels increased due to improved uptime • Erskine production levels at highest level since Serica acquisition due to increased uptime •
Slide 12: Operational Timeline 2020 – 21
Operational Timeline 2020 – 21 2020 2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 Bruce Maintenance R3 Preparation R3 Activity R3 Wrap Up Bruce Well Interventions Columbus Preparations Columbus Drilling Columbus Hook Up Columbus First Gas N
Slide 13: North Sea Portfolio
North Sea Portfolio North Eigg Rhum • Serica is operator of and has a 98% interest in Bruce, a 100% interest in Keith and a 50% interest in Rhum Bruce, Keith PRODUCE • Serica has an 18% non-operated interest in the Erskine field • Serica is operator of and has a 50% interest in the Columbus developm
Slide 14: Bruce, Keith and Rhum
Bruce, Keith and Rhum • Keith and Rhum fields are subsea tie-backs to the Bruce platform • By reducing costs and increasing uptime, Serica intends to prolong the life of the Bruce facilities • The extensive infrastructure associated with Bruce offers significant capacity for third party tieback oppo
Slide 15: The Rhum Field - Summary
The Rhum Field - Summary • Serica acquired BP’s 50% interest and operatorship in November 2018 following the removal of Iranian ownership and involvement • Arrangements permitting the continuation of field operations were agreed with both UK and US governments • Rhum gas field was developed as a 45
Slide 16: Multiple Growth Opportunities in the Bruce Catchment Area
Multiple Growth Opportunities in the Bruce Catchment Area • Existing fields • Well work: planning commenced for R3 project in late 2019 • Optimising the management of Bruce facilities: lowering suction pressures for Bruce and Keith wells has increased gas production • Infill drilling: Serica is eval
Slide 17: Eigg Licence Award (Serica 100%)
Eigg Licence Award (Serica 100%) • In December 2019, Serica Energy (UK) Limited, received an out of round award of a 100% interest in the UK petroleum licence P2501, blocks 3/24c and 3/29c. These are located in the area adjacent to the Serica operated Rhum field • The award contains the HPHT North E
Slide 18: Eigg Prospects
Eigg Prospects Unrisked Prospective Resources (Recoverable) • The primary prospect is North Eigg which is estimated to Serica Internal Estimates contain 360 bcf (P50) and potentially over 1Tcf (P10) of Dry Gas (bcf) Condensate (mmbbls) recoverable gas P90 P50 P10 P90 P50 P10 • The North Eigg prospec
Slide 19: Erskine (Serica 18%) – Continued Improved Performance
Erskine (Serica 18%) – Continued Improved Performance Demonstrates the ability of focused operators to add value to mid & late life assets • The independent CPR evaluation of Serica net 2P reserves at the effective date of purchase (1 Jan 14) was 3.6 million boe • In the six years since then, net Se
Slide 20: Columbus Development (Serica 50%)
Columbus Development (Serica 50%) Operated Development Project • Columbus will be drained by a single subsea well, which will be connected to the Arran-Shearwater pipeline, through which Columbus production will be exported along with Arran field production • At Shearwater the production will be sep
Slide 21: Financial Strength
Financial Strength Diversified portfolio with low • Serica’s diverse portfolio has limited decommissioning liability due to the decommissioning liability innovative nature of the Erskine transaction and the various BKR transactions • Serica’s share of BKR Net Cash Flow increased by one-fifth at 1 Ja
Slide 22: Corporate Activity
Corporate Activity Serica’s continuing strategy is to identify asset acquisitions or corporate opportunities where we can add value. This started with the Erskine acquisition completed in 2015 and continued with the 2018 BKR transactions Serica has demonstrated the ability to unlock value by address
Slide 23: Continuing Strategy to Deliver Growth
Continuing Strategy to Deliver Growth Maximise production and reduce costs • Talented, motivated team in place and delivering results • Focus on maximising economic recovery of oil & gas • Harness technology and creativity to extend life of fields • Establish hub strategy for Bruce facilities, attra
Slide 24: Appendix
Appendix 24 Serica Energy plc – Corporate Update – January 2020
Slide 25: Our Board
Our Board Tony Craven Walker Mitch Flegg Neil Pike Executive Chairman Chief Executive Non-executive Director • A leading figure in the British independent oil • Over 35 years’ experience in the upstream oil • Involved in the global petroleum business as a industry since the early 1970s, having start
Slide 26: Our Board
Our Board Ian Vann Trevor Garlick Malcolm Webb Non-executive Director Non-executive Director Non-executive Director • Joined BP in 1976 • Over 35 years’ experience in North Sea • Joined Burmah Oil in 1974 as a legal adviser • Directed and led BP's global exploration Upstream operations and developme
Slide 27: Senior Management Team
Senior Management Team Andy Bell Stephen Lambert Clara Altobell Mike Killeen VP Finance VP Commercial VP Technical VP Operations Danny Fewkes Carol Stewart Fergus Jenkins Group Treasurer Business Manager Manager of Projects 27 Serica Energy plc – Corporate Update – January 2020
Slide 28: Major Shareholders
Major Shareholders As at 23 December 2019 Number of Shares % of issued Share Capital GRG UK Oil LLC 46,090,576 17.25% AXA Investment Management 30,802,875 11.53% Mr David Hardy 28,622,418 10.71% Canaccord Genuity Wealth Management 17,800,000 6.66% BP Exploration Operating Company 13,500,000 5.05% Po
Slide 29: For further information visit www.serica-energy.com
For further information visit www.serica-energy.com or email info@serica-energy.com 29 Serica Energy plc – Corporate Update – January 2020