Serica Energy provides the following update on the North Eigg exploration well.

Drilling operations on the North Eigg exploration well have encountered delays and, following a recent equipment failure and the required mobilisation of a replacement, operations are now expected to take some six weeks longer to complete than the original schedule.

Operations had been progressing successfully despite some drilling delays in the top-hole sections. During recent preparations for drilling the third section of the well there was a failure of a vital piece of rig equipment during routine pre-job testing. A replacement has been sourced and planning is underway to transport this to the drilling rig.

This will have no impact on the ultimate geological outcome of the well and it is expected that all well costs will benefit from the Investment Allowances available under the recently introduced Energy Profits Levy.

Serica’s net well cost after tax is anticipated to increase by approx. £3 million as a result of the delays and it is now expected that results from the well will be available in December 2022.

Mitch Flegg, Chief Executive of Serica Energy, commented:
"This high-impact exploration well is the latest in a series of capital investment projects undertaken by Serica with the objective of increasing our production in an environmentally sensitive manner. This programme is designed to help increase the UK’s security of supply and reduce its reliance on imports.

The technical delays encountered on this project are extremely frustrating but do not impact either the chance of success or the significant prospective volumes of this exploration prospect.”

KeyFacts Energy: Serica Energy UK country profile