Acquisition of assets from Parkmead Group
12 December 2024
Serica Energy plc
('Serica' or 'the Company')
Acquisition of assets from Parkmead Group
Serica Energy plc (AIM: SQZ) announces that it has signed an agreement to acquire 100% of the shares in Parkmead (E&P) Limited ('PUK') from Parkmead Group Plc ('Parkmead'), which includes a 50% working interest in licence P2400 (Skerryvore) and a 50% working interest in licence P2634 (Fynn Beauly), for an initial consideration of £5 million ($6.4 million[1]).
An additional deferred consideration of £9 million ($11.5 million1) will be paid in stages over the next three years, as well as contingent payments linked to certain development milestones - payable on receipt by Serica of approval by the North Sea Transition Authority ('NSTA') for a field development plan ('FDP') relating to Skerryvore or Fynn Beauly. These payments are calculated based on £0.8/bbl of net 2P reserves contained within the respective FDP, subject to a cap of £30 million and £90 million respectively.
The transaction provides optionality regarding future projects, simplifies decision making, and provides strategic flexibility relating to the existing position in Skerryvore through consolidating the interests in the P2400 licence, in which Serica Energy (UK) Limited, a wholly owned subsidiary of Serica, already holds a 20% interest. Following completion of the transaction, Serica will hold 70% and become the operator.
The P2634 licence was awarded in the 33rd Licencing Round in July 2024 to PUK, as operator, and Orcadian Energy, and includes the Fynn Beauly heavy oil discovery. The current licence commitment is limited to technical studies to assess the feasibility of reducing Fynn Beauly oil viscosity using enhanced oil recovery techniques.
PUK has carried forward tax loss balances which as at the transaction economic date of 30 June 2024 amounted to £197 million of ring-fence corporation tax losses, £181 million of supplementary charge tax losses, £1 million of Energy Profits Levy losses and £12 million of activated investment allowances. PUK has no employees.
The transaction is expected to close in the first half of 2025, subject to customary completion adjustments and the carve-out of PUK's Dutch assets to a Parkmead affiliate and NSTA change of control consent.
-end-
Enquiries:
|
Serica Energy plc |
+44 (0)20 7487 7300 |
|
Martin Copeland (CFO) / Andrew Benbow (Group Investor Relations Manager) |
|
|
|
|
|
Peel Hunt (Nomad & Joint Broker) |
+44 (0)20 7418 8900 |
|
Richard Crichton / David McKeown / Emily Bhasin |
|
|
|
|
|
Jefferies (Joint Broker) |
+44 (0)20 7029 8000 |
|
Sam Barnett / Will Soutar |
|
|
|
|
|
Vigo Consulting (PR Advisor) |
+44 (0)20 7390 0230 |
|
Patrick d'Ancona / Finlay Thomson |
serica@vigoconsulting.com |
NOTES TO EDITORS
Serica Energy is a British independent oil and gas exploration and production company with a portfolio of UKCS assets. Serica has a balance of gas and oil production. The Company is responsible for about 5% of the natural gas produced in the UK, a key element in the UK's energy transition.
Serica's producing assets are focused around two main hubs: the Bruce, Keith and Rhum fields in the UK Northern North Sea, which it operates, and a mix of operated and non-operated fields tied back to the Triton FPSO. Serica also has operated interests in the producing Columbus (UK Central North Sea) and Orlando (UK Northern North Sea) fields and a non-operated interest in the producing Erskine field in the UK Central North Sea and interests in several earlier stage licences.
Serica has a two-pronged strategy for growth comprising investment in its existing portfolio and M&A. Further information on the Company can be found at www.serica-energy.com. The Company's shares are traded on the AIM market of the London Stock Exchange under the ticker SQZ and the Company is a designated foreign issuer on the TSX. To receive Company news releases via email, please subscribe via the Company website.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 7 hours ago Rathbones Group
- 7 hours ago Raspberry PI Holdings (WI)
- 8 hours ago Alumasc Group
- 9 hours ago Land Securities Group
- 9 hours ago Computacenter