Serica Energy increases stake in North Sea oil and gas fields

Oil explorer Serica Energy has acquired further interests in the BHP Billiton operated Bruce and Keith fields in the UK’s North Sea.

AIM-listed Serica signed a sale and purchase agreement to acquire the oil and gas fields from the FTSE 100 mining giant on Monday.

Serica will acquire a 16% interest in the Bruce field and a further 31.83% interest in the Keith field, consolidating its ownership of the two fields to 94.25% and 91.67% respectively post-completion.

The group will pay an initial cash consideration of £1m for working capital and 40% of post-tax cash flows. BHP will retain liability for the costs of decommissioning facilities and wells already in place. Serica will pay deferred consideration to BHP in respect of 30% of BHP's share of future decommissioning costs when due.

Chief Executive Mitch Flegg, said: "This acquisition, in addition to the previously announced transactions with BP and Total, place us in an even better position to unlock increased value from the assets and benefit from economies of scale."

As of 0845 GMT, Serica shares had climbed 7.78% to 128.26p.