BP BP Plc

   By Nathan Allen 
 

ACQUIRER: Serica Energy PLC

SELLER: Total SA (FP.FR)

TARGET: Further interests in the Bruce and Keith fields in the North Sea.

PRICE: Serica will pay an initial cash consideration of $5 million followed by three further $5 million installments.

STRUCTURE: Serica UK will acquire a 42.25% interest in the Bruce field and a 25% interest in the Keith field and associated infrastructure.

STATUS: Incomplete

EXPECTED CLOSE: The deal should close in the third quarter, following the completion of a separate deal to buy stakes in the Bruce, Keith and Rhum fields from BP PLC (BP.LN).

RATIONALE: The acquisition will strengthen Serica's position as a leading mid-tier independent oil-and-gas producer on the U.K. continental shelf. It should be immediately cash flow and value accretive.

STOCK MOVE: Serica is trading 7.9 pence, or 11%, higher at 78.2 pence, after peaking at 83.98 pence earlier in the session.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

August 03, 2018 03:43 ET (07:43 GMT)

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