Serica Energy is maintaining its year-end production target of 65,000 barrels of oil equivalent per day (boepd), even as an extended shutdown at its Triton floating production facility weighs on North Sea output.

The UK oil and gas producer said Monday that production at the Triton FPSO is now expected to resume around the end of November, later than initially anticipated. Maintenance began on July 27 and was originally expected to last approximately two months, but final safety checks identified the need to replace an engine in one of the facility’s power generation units.

The disruption has prompted Serica to forecast average production of just below 40,000 boepd for 2026.

Third-quarter production fell to approximately 22,100 boepd from 50,200 boepd in the preceding quarter, reflecting scheduled maintenance at both the Triton and Bruce hubs.

Despite the operational setback, Serica’s production averaged 37,100 boepd during the first nine months of 2026, representing a 44% increase from the same period last year.

Revenue more than doubled to $905 million over the nine-month period, compared with $439 million a year earlier. Third-quarter revenue reached $228 million, up from $134 million in the corresponding quarter of 2025.

Stronger Gas Prices Support Cash Flow Outlook

Serica maintained its full-year post-tax cash flow from operations guidance of $450 million to $475 million, supported by stronger natural gas prices and contributions from its expanded asset portfolio.

The company’s recently acquired Southern North Sea gas assets from Spirit Energy are contributing approximately 12,000 boepd, helping lift current production above 40,000 boepd even before Triton returns to service.

Meanwhile, the Bruce Hub resumed operations on September 12 following scheduled maintenance and is currently producing approximately 20,000 boepd net to Serica, predominantly natural gas.

Serica reported $227 million in cash at the end of September, down from $326 million at the end of June. Borrowings remained unchanged at $300 million, leaving the company with net debt of $73 million.

Total available liquidity stood at $685 million, including undrawn committed borrowing capacity of $458 million.

The company also maintained its 2026 capital expenditure guidance of $175 million to $195 million and operating expenditure guidance of $380 million to $400 million, excluding $65 million associated with Lancaster.

North Sea Drilling Program Targets Further Growth

Beyond the anticipated Triton restart, Serica is advancing a drilling campaign scheduled to begin in 2027 and continue into 2028.

The company estimates that opportunities within its operated drilling portfolio could deliver up to 30,000 boepd of additional production, potentially supporting overall output of around 50,000 boepd into the next decade.

Drilling at the Bruce Hub is expected to begin in the third quarter of 2027, with initial production anticipated within 12 months of the campaign’s commencement.

Serica is also progressing the Skerryvore exploration prospect, which targets gross unrisked prospective resources of 135 million barrels of oil equivalent across two reservoirs. The prospect’s proximity to existing infrastructure could provide development options if exploration proves successful.

Other projects under consideration include the Kyla development and additional production opportunities West of Shetland.

The expansion plans come as UK North Sea producers continue to focus on extracting value from established infrastructure through infill drilling, nearby discoveries and portfolio acquisitions.

Serica is evaluating additional acquisition opportunities in both the UK North Sea and international markets as it seeks to diversify production.

Separately, the company expects to publish a prospectus this week for its planned move from London’s AIM market to the London Stock Exchange’s Main Market. The transition could make Serica eligible for inclusion in the FTSE 250 during December’s index review.

The company plans to issue its 2027 production and financial guidance on January 20, 2027.

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