Serica Energy PLC (AIM:SQZ) has announced first production from the Gannet GE-04 well, part of the Triton area in the North Sea, which is among the assets being acquired via Tailwind Energy.
The company, in a statement, said final commissioning was now complete and production had commenced via the Triton floating production vessel.
Production volumes from the Gannet well are said to be above pre-drill expectations with initial rates in excess of 10,000 barrels of oil per day.
“We are delighted with the strong initial results,” said chief executive Mitch Flegg in a statement. “This additional production means that the Triton hub is now producing at gross rates not seen for the last 10 years."
“This performance is a credit to the outstanding work completed by the Tailwind team, their contractors, and Dana Petroleum (E&P) Limited, the Triton operator.
“We look forward to welcoming the Tailwind team to Serica on completion of the acquisition which is expected next month," he added.
Tailwind was bought by Serica in a deal agreed back in December 2022 which will be formally completed next month - Gannet was spudded in late 2022 and completed in January. Serica agreed to acquire Tailwind Energy Holdings for £367mln paid mostly in shares plus £58.7mln of cash, whilst also taking on Tailwind’s debts of around £277mln.
Adding interests in six additional producing fields, bringing the company's total to eleven, the deal sees Serica’s production profile grow to around 40,000 to 45,000 barrels of oil per day of production to Serica – excluding volumes from new wells like Gannet – putting the London-listed firm among the top ten North Sea producers
Tailwind owns a 64.6% interest in Triton, which is operated by Dana Petroleum.
Flegg noted: "Including the Tailwind Acquisition assets, we have an exciting investment programme of value-adding activities throughout 2023 and 2024 which has started with the Gannet GE-04 well being brought onto production.”