Serica Energy to acquire Bruce and Kieth interests for $20m

UK oil and gas company Serica Energy on Friday agreed to acquire further interests in the Bruce and Keith (BK) fields in the UK North Sea from Total for up to $20m.

The company said it would acquire a 42.25% interest in the Bruce field and a 25% interest in the Keith field and associated infrastructure, taking its stake in each to 78.25% and 59.83% respectively.

Completion will be subject to the previously announced acquisition of interests in the Bruce, Keith and Rhum fields from BP.

The initial cash consideration for the BK acquisition is $5m, to be adjusted for working capital, with a further cash consideration of $15m to be paid in three equal instalments.

Mitch Flegg, chief executive of Serica, said: "This acquisition is a logical next step for us. It provides us with further scale, builds on our asset base and moves us closer towards our objective of being a highly efficient, profitable mid-tier operator focused on the UK North Sea, where we believe there is plenty of potential for further growth."

The first half of the year saw net production from the BK assets at approximately 4,700boe/d, of which 83% is gas, and the acquisition is expected to be immediately cash flow and value accretive following completion.

Serica Energy’s shares were up 19.49% at 84.00p at 1653 BST.