Serica Energy Buys Three North Sea Oil Field Interests From BP; Names New CEO
November 21 2017 - 3:56AM
Dow Jones News
By Ian Walker
Serica Energy PLC (SQSSY) said Tuesday that it is buying BP
PLC's (BP) interests in three North Sea oil fields for up to 52
million pounds ($69 million) in a deal classified as a reverse
takeover under Stock Exchange rules.
The independent oil-and-gas exploration and production company
also said it has appointed Mitch Flegg as Chief Executive with
immediate effect.
Serica is buying a 36% interest in the Bruce field, a 34.83%
interest in the Keith field and a 50% interest in the Rhum field
through its subsidiary Serica U.K. The acquisition, which includes
associated infrastructure, is subject to certain regulatory,
government and partner consents and is expected to complete
mid-2018, it said.
Serica is paying an initial consideration of GBP12.8 million
with a further GBP39.1 million payable dependent on certain
production and gas price thresholds being achieved.
Under the deal, BP will receive a share of pretax net cash flow
from the assets of 60% in 2018, 50% in 2019 and 40% in each of 2020
and 2021, Serica said.
Serica added that based on rates for the first half of the year,
net production would increase sevenfold to over 21,000 barrels of
oil equivalent a day, of which over 85% will be gas.
Serica's shares have been suspended from trading as required
under Stock Exchange rules given that the deal is classified as a
reverse takeover. Shares were suspended at 23.25 pence.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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(END) Dow Jones Newswires
November 21, 2017 03:41 ET (08:41 GMT)
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