LONDON (Alliance News) - Serica Energy PLC said Friday it has completed its acquisition of interests in the UK North Sea, and its shares resumed trading on AIM as a result.
The acquisition constituted a reverse takeover under AIM rules, which necessitated the suspension.
Shares in the oil and gas company were down 1.5% at 132.00 pence on Friday following re-admission.
Serica acquired BP PLC's interest in the Bruce, Keith and Rhum fields, as well as associated infrastructure. It also acquired interest in the same three fields from Billiton Petroleum Great Britain Ltd, Total E&P UK Ltd, and Marubeni Oil & Gas (UK) Ltd.
Following these acquisitions, Serica has become the operator of the three fields. It holds a 98% interest in Bruce, a 100% interest in Keith, and a 50% interest in Rhum.
Serica's initial payment for the interests will be USD22 million.
However, as part of its sharing arrangement with BP, Billiton, and Total E&P, Serica will receive a 40% share of the net cash flow, adjusted for a 40% tax, from the fields for between the start of 2018 and the present date.
Serica also will receive 100% of net cash flow, on the same tax basis, from Marubeni for the same 11-month period.
These cash flow amounts total approximately USD50 million.
"The acquisitions, once complete, are transformational for Serica firmly placing us as one of the leading 'mid-tier' independent exploration and production companies operating in the UK North Sea," said Serica Chairman Tony Craven Walker.
BP (BP.)
Serica Energy (SQZ)
