Serica boss expresses disappointment with Budget


Serica Chief Executive, Mitch Flegg, used the firm’s year-end update to the London Stock Exchange to communicate his disappointment with the Chancellor’s decision to extend the Energy Profit Levy (EPL) for another year with the aim of raising an extra £1.5billion from North Sea energy companies.

Flegg said, ” It would be remiss not to express considerable disappointment with the extension of the EPL announced in the Budget yesterday. Current oil and gas prices do not represent windfall conditions for UK producers and increasing the tax burden on domestic oil and gas production again will be damaging for UK jobs and the economy. The achievements delivered by Serica have added to domestic sources of energy. The kind of approach exhibited in the Budget will lead to more imports and reduce the ability of our industry to enhance the UK’s resilience to potential energy shocks in the future

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Other highlights from the statement related to the company’s update on reserves as summarised below. But the keynote that strikes a chord with all concerned about the future of the industry and the risks facing the North East economy remained the comment on the Budget announcement.

Key highlights from Serica update included:

  • Net Proved plus Probable (“2P”) reserves at 31 December 2023 of 140 million boe, up 10 million boe from 130 million boe at 31 December 2022 despite producing 14 million boe in 2023 on a proforma combined Serica and Tailwind basis
  • Overall 2P reserves additions of 24 million boe during 2023 representing a reserves replacement ratio of 179%2
  • Over 90% of 2P reserves in fields that are already in production
  • Even split of oil and gas reserves
  • Average net production in January and February 2024 about 45,500 boe per day
  • Production guidance for 2024 remains at 41,000 to 48,000 boe per day

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