DEVELOPMENT

Near-term development opportunity

BLOCK 23/16f and 23/21a (part)

Serica 50% (operator), Endeavour 25%, EOG 25%

Map of Columbus

Columbus location: UK Central North Sea

Map of Columbus field export routes

Columbus development via Shearwater

The Columbus Development ("Columbus") is a gas-condensate accumulation in the Forties Sandstone Formation and has been fully appraised by four wells. It has been comprehensively mapped and modelled by Serica in preparation to progress the field through development and on to production.

Independent consultant Netherland, Sewell & Associates, Inc (“NSAI”) carried out a reserves audit on Columbus in 2017 based on a single well development. This report estimated that the gross Proved plus Probable Contingent Resources of the field are 53.8 bcf of gas and 3.7 mmbbl of liquids, a total of 12.6 mmboe.

Serica’s share of proved and probable contingent resources in the field is estimated to be 26.9 bcf of sales gas and 1.8 mmbbl of liquids, a net 6.3 mmboe to Serica.

Serica technically evaluated two alternative export routes for Columbus production, via the Chrysaor-operated Lomond platform directly southeast, or via the Shearwater platform, 35km to the Southwest as part of a joint development of the Arran field. On 28 June 2018, Serica announced it had submitted a Field Development Plant to the OGA. The Development Area will be drained by a single subsea well, which will be connected to the proposed Arran-Shearwater pipeline, through which Columbus production will be exported along with Arran Field production. The FDP is therefore contingent on development approval and go-ahead for the Arran project. When the production reaches the Shearwater platform facilities, it will be separated into gas and liquids and exported via the SEGAL line to St Fergus and Forties Pipeline System to Cruden Bay respectively. Columbus development timing will depend on the Arran-Shearwater pipeline being tied into the Shearwater platform in Q3 2020. Columbus start-up is targeted for Q2 2021.