Serica Energy signed a Sale and Purchase Agreement (SPA) to acquire further interests in the Bruce and Keith fields and associated infrastructure in the UK North Sea from Total.
Serica has agreed to take over BP’s interests in the Bruce (36%), Keith (34.83%) and Rhum (50%) fields, with BP retaining 1% of Bruce. Serica will also be taking over operatorship of Bruce from BP.
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Overall, these assets recorded average production of 18,500 boepd net to BP in the first half of 2017 and are estimated to contain net 2P reserves of 47 mmboe as of 01.01.18, of >85% gas.
Completion of the transaction is expected to occur in mid 2018.
Highlights accompanying the transaction include the following:
- Further increase in reserves and production
- Structured to mitigate financial risk and maintain balance sheet resilience
- Further increased scale in line with strategic growth plans
The initial cash consideration for the BK Acquisition is US$5 million, to be adjusted for working capital, with further cash consideration of US$15 million to be paid in three instalments of US$5 million.
Mitch Flegg, Chief Executive of Serica Energy, stated:
Completion of the transaction with Total E&P is anticipated to take place immediately after completion of the BKR Transaction with BP which requires certain regulatory consents, including a Licence from the US Office of Foreign Assets Control (“OFAC”) relating to ongoing operations on the Rhum field.
