(Alliance News) - Serica Energy PLC and Jersey Oil & Gas PLC on Monday said they have completed the Greater Buchan Area farm-out agreement.
Jersey Oil & Gas PLC is an upstream oil and gas company focused on the UK continental shelf region of the North Sea, while Serica Energy is a UK North Sea-focused oil and gas company.
Serica Energy said its subsidiary Serica Energy (UK) Ltd has completed the acquisition of 30% non-operated interests in the P2498 and P2170 licences from Jersey Oil. Together, the two licenses are known as the Greater Buchan Area.
The agreement was first announced back in November.
On completion, Serica made a cash payment to Jersey Oil of USD6.8 million. In total, the GBA farm-out transactions provide Jersey Oil with up to USD38 million in cash payments.
Serica Chief Executive Mitch Flegg said: "We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica's North Sea portfolio. As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition."
Shares in Serica Energy were up 2.1% to 176.20 pence each in London on Monday morning. Meanwhile, shares in Jersey Oil jumped 4.0% to 179.34p.
By Sophie Rose, Alliance News senior reporter
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