Nat gas price almost double what it was a year ago... lower production in H2 might end up being a positive as much more revenue captured at the higher rates currently in the market. |
Incredible that anyone still reads what that clown has to say - he's terrible. |
 Malcy's Blog
After all we heard at the end of last year regarding compressor issues this comes as no surprise and eyes turn to 2025, with numbers already picking up sharply and the problems at Triton hopefully are now behind the company, with the extra comfort of a second compressor set to be online this quarter.
With production ramping up and with Gannet GE05 coming onstream and EC1 on Guillemot imminent there is also the COSL Innovator rig which is now set to move to commence drilling operations on EV02 on the Evelyn field, all adding to the production in 1H 2025.
Finally there is a silver lining to this particular cloud, with none of the production problems down to reservoir irregularities the missed production last year was at a time of lower commodity prices, at the moment prices are considerably higher and there has been no loss of reserves yet revenue will increase.
So with production rising strongly and in the short term bringing additional revenue, 2025 has started well and with much to look forward to, sound management, strong finances, some tax breaks and potential M&A activity Serica certainly deserves inclusion in the upcoming Bucket List.
Serica will host a live presentation on the Investor Meet Company platform on the day of the trading and operations update, 21 January 2025, at 0900 GMT. The presentation is open to all existing and potential shareholders. Questions can be submitted prior to the meeting up until 20 January 2025, 0900 GMT, and at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Serica Energy plc via: |
Fantastic Update production upto to 46,400 and still other wells coming on stream shortly. Another easy 10,000bopd to add to the coffers.
Great news! |
Great news, onwards and upwards. Updating procedures is Google engineering code for we’ve been operating the compressor the wrong way. |
Serica operates from the Bruce hub in North Sea. What's the point of posting irrelevant info. |
hxxps://www.msn.com/en-gb/money/other/french-energy-giant-shuts-down-vital-north-sea-oil-hub/ar-AA1x38QC?ocid=winp2fptaskbar&cvid=3c1148198d6f4a33fbdc050fc4a58251&ei=11 |
Issues resolved and new wells on track to add to production is the important bit with existing production back to 46.4k. production for q2 may have been lower than the average due to the issues now resolved but gas prices have been higher. |
No surprises.. all on track Imo |
Production now back up to highest annual rate of 46,400 boepd after a disappointing spell.With more from Triton, Gillimot, Gannet and Evelyn still to come, we will be cooking on gas. |
Bought to break 1.50p nice!
Could rally after that :) |
Are we not due an update regarding the Triton Compressor gas seal repair? |
What is £70-80 per MWh (2012 pricing) reindexed to 2030 the earliest this project could be online?
According to Nat Grid Live over the 'past year' UK electric cost averaged £70.91/MWh in 2024. So this Morocco project reindexed from 2012 to 2030+ pricing could deliver extremely expensive energy? |
"The Morocco – UK Power Project is a privately funded infrastructure project.
In August 2023, the project was declared a project of “national significance” by Claire Coutinho, the UK’s Secretary of State for Energy Security and Net Zero.
The project will generate revenue via the Contracts for Difference (CfD) scheme, the UK government’s mechanism for supporting low-carbon electricity generation. CfDs incentivise investment by providing developers of low-carbon projects with direct protection from volatile wholesale prices, and they protect consumers from paying increased support costs when electricity prices are high. Developers of renewables projects that receive a CfD, enter a contract with the Low Carbon Contracts Company (LCCC), a government-owned company.
A CfD ‘strike price’ reflects the cost of investment in a low-carbon technology. It is set at the time the contract is agreed – expressed as a 2012 price to allow for cost/value comparison of different projects over time – and is uprated for inflation annually. CfD generators are paid the difference between the ‘strike price’ and the ‘reference price’ (the average market price for electricity in Great Britain). This helps to create a relatively stable revenue stream around the strike price. When the market price for electricity generated by a CfD Generator is below the agreed strike price, payments are made by LCCC to the generator to make up the difference. Conversely, when the market price is above the strike price, the CfD Generator pays LCCC the difference.
When we look at our internal cost projections as they stand today, we would envisage a strike price range of £70-80 per MWh (2012 pricing), but ultimately the strike price will be determined by DESNZ, who are currently evaluating the project
Sounds like Ed Milliband will be setting the strike price. Presumably at a level to provide guaranteed cash flows to cover the project, as it would otherwise be uneconomic? |
Yes, yes, yes but are UK based solar farms self funding? Or reliant on government subsidies? Is the (?x1000kms) underwater cable from Morocco reliant on build subsidy? Or artificially inflated guaranteed power prices to deliver the project? |
You're in danger of manipulating the numbers based on winter solar irradiatiom which is much lower than annual average which was c. 5% of all electricity last year. Wind was actually 31% so those windmills did almost a third of UK electricity production last year! Solar is small scale still but we probably aren't far away from large farms in northern Africa powering Europe. Anyway, gone way off topic here. I believe the UK needs more renewable and more gas so serica should do alright. |
Gas up another 2% to 124.50p/th today.
Weather cloudy and calm with minimal daylight hours. |
Nigel
It might be self funding (whatever that means) but solar is really an irrelevance for the UK. According to National Grid Live over the 'past day' solar contributed 1.2%, wind 15.5%, gas 46%. Solar's contribution will fall to 0% after sundown.
But even if solar is relevant for the UK. What are the economics? I don't actually know but my hunch is all these solar farms that private equity build in the UK are only there to collect the subsidies. Am I wrong Nigel? You say they are self funding. How does it work in the UK? Can you really construct and run a solar farm for say 20,000 home equivalent output without being reliant on subsidies? Sometimes the subsidy is in the form of minimum and guaranteed price support to make what would otherwise be a non-commercial investment a commercial investment. |
Solar is now self funding. Wind is getting there. Net Zero is a fantasy but that's a very different argument. |
There is a really good documentary, 78 mins of it, on Sky News Australia, also on you tube. Googling
The Real Cost of Net Zero: The shocking truth of the renewable energy push
should get you there. |
OT,
A comment from elsewhere -
"In 2024 the consumer paid Seagreen [windfarm] £104 million for actually generating electricity, plus £198 million for the constrained volumes, and £64 million for the premium charged to reduce output.
This gives a total of £367 million.
The amount of green electricity actually generated by Seagreen in 2024 was 1.36 TWh. Therefore the cost to the consumer of Seagreen's actually generated wind power was £270 per MWh." |
The simple ignorance on here is something to behold. Suggest people read up on it. |
@loganair
Also, windfarm operators are told to shut down windmills as our aging grid system is unable to cope with too much energy entering the grid and we have insufficient storage capacity/infrastructure. When this happens, the windfarm operators are paid a wind curtailment/constraint payment. this cost is indirectly paid by the consumer.
There are various news reports out there as to how much is paid to the operators per year - BBC, Telegraph, Bloomberg, Carbon Tracker, etc - Worth a bit of a read. |
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