Drilling Rig Contracted for Rhum-3 Well Intervention
Tuesday 12 May 2020
Serica Energy plc (AIM: SQZ) is pleased to announce that it has entered into a contract for the provision of a drilling rig for the intervention work on the Rhum-3 (“R3”) well on behalf of the Rhum partners.
The work will be carried out using the Awilco Drilling’s WilPhoenix, a 3rd-Generation, Enhanced Pacesetter, harsh-environment, mid-water, semi-submersible drilling rig. It is expected that operations will commence in the 4th quarter of 2020 and last approximately 70 days.
The work programme will involve recovering debris left in the well by the previous operator and removing an obstruction that is believed to be in place across parts of the downhole completion. The well will then be recompleted and put into production. R3 is already connected to the subsea production infrastructure.
Serica has assessed the potential for COVID-19 related matters to impact the availability of equipment and or personnel and has determined that there are currently no related issues that will prevent the execution of this project.
Mitch Flegg, Chief Executive of Serica Energy, commented:
“We are delighted that this work will proceed in 2020.
With a strong balance sheet, no debt and limited decommissioning liabilities, Serica is well-placed to weather the wider industry downturn related to COVID-19 and low commodity prices. This resilient position is enabling us to also continue with our previously stated work programmes.
Bringing the R3 well into operation will increase the production capacity of the Rhum field and will also improve the expected ultimate recovery of reserves. Having three rather than two wells will also provide more flexibility in the management of the field.