Serica Energy has cautioned that first quarter production volumes from the Erskine field in the North Sea would be below expectations following a pipeline blockage.
Production for the first quarter of 2016 is now expected to average 2,100 barrels oil equivalent per day net to Serica, compared with prior guidance for between 2,500 and 3,000 boepd.
The junior oil firm told investors that output for March has been impacted. It comes after what Serica described as a ‘strong production performance’ in January and February.
A foam cleaning device, called ‘a pig’, became stuck in a pipeline during essential maintenance operations. Equipment to safely clear the pipeline is being deployed, and the company expects production will restart in mid-April.
Serica warned that output volumes for April will depend upon how quickly the field can be restarted, though chairman Tony Craven Walker said he expected the ‘strong performance’ would resume.
"The Erskine field has continued to exceed expectations since Serica acquired its interest in June last year,” he said in a statement.
“The high facility uptime, improved and consistent field production rates and material cost reductions have resulted in operating costs per barrel well below recent oil price lows.”
On AIM, Serica shares were down 0.37p, or 4%, trading at 9p each.