Neptune Energy UK Builds on Successful Track Record in First Half of 2019

Neptune Energy UK Builds on Successful Track Record in First Half of 2019

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29 August 2019

Improved operational performance, increased production efficiency, lower opex and sanctioning of the first major project in the North Sea in 2019 were among the highlights for Neptune Energy’s UK business in the first half of this year.

As Neptune Energy Group announced its global financial results for the period ending 30 June 2019, the UK business reported strong results for the first six months of the year.

Production from the Cygnus facility in the Southern North Sea during the second quarter of 2019 averaged 16.8 kboepd, flat on the previous period, with higher production efficiency than in the first half. Low opex was maintained, remaining broadly unchanged at $8/boe.

In June, the A5 well was brought online. It is the ninth of 10 wells planned as part of the Cygnus field development plan (FDP), and is capable of producing at around 50 mmscfd.

The Seagull oil development FDP was submitted to the Oil and Gas Authority and approved in March, with the EPCI contract awarded in July. The offshore construction campaign is scheduled to start in 2Q 2020, with first oil in 2021, adding 15 kboepd net production.

The UK business initiated a programme of efficiency improvements and identified a range of onshore and offshore opportunities including maintenance optimisation campaigns, warehouse stock reviews and process improvements on brownfield modifications.

Good progress also continues to be made on the decommissioning of the Minke and Juliet fields in the Southern North Sea.

Neptune Energy’s UK Managing Director, Pete Jones, said: "Our focus remains on growing our business safely and responsibly, delivering a strong track record and investing in the right opportunities. Our teams have performed very strongly to increase production efficiency on Cygnus and maintain low opex.

"We continue to work closely with our partners and we’re seeing strong progress with the Seagull project which was sanctioned and approved by the OGA in the first half of the year.

"We look forward to participating in the 32nd Offshore Licensing Round for exploration acreage later this year and remain on track to spud a well at Isabella in October, one of the most exciting prospects in the Central North Sea.”