Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Mitch’ tweet also :
As we celebrate the 5th anniversary of our company-changing deal to take ownership of BP’s Bruce asset, I’d like to applaud the hard work, focus and commitment of our brilliant team on and offshore, who have helped to build the Company into the multi-asset operation it is today.
https://x.com/mitchfleggceo/status/1730169238487216313?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Latest Serica Energy tweet :
https://x.com/sericaenergyplc/status/1730170372870246609?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Today staff on & offshore at Serica are celebrating the 5th anniversary of the groundbreaking deal that took the Bruce asset into Serica operatorship. Since then our superb team has worked relentlessly to grow our business into a multi-asset operation with a strong future vision.
Malcy’s take on the deal :
JOG first ….
This is a truly awesome deal by JOG who continue to deliver on its promises to shareholders whilst maintaining the intense focus on proving that substantial developments in mature oil provinces can be closer to net zero than almost anywhere else worldwide. It will leave them with a 20% non-operated stake in the GBA, a development that others now share their faith in and a great deal of incoming cash.
In my conversation this morning with Andrew Benitz it was impossible not to detect considerable pride in the trust and perseverance of his team who have negotiated a deal which is a rare thing, a genuine win-win for not only JOG but also for NEO and of course Serica. With some $38m due to come in by the time of the FDP, JOG get a fantastic return on their investment but also for their partners this is a genuinely significant tax efficient investment opportunity.
For JOG shareholders the time has come to stop worrying and to enjoy the ride, they have great value to unlock thanks to this deal, with FDP next year and first oil in late 2026 they have protected any downside and opened up the upside and of course are in an enviable financial position with material value yet to come.
I have been a consistent believer both in JOG and of the GBA, today might be the crystallisation of all those notes and suggested values so it will come as no surprise that I genuinely believe that my Target Price, previously believed to be somewhat absurd at £10 per share to be easily achievable, I remain a big fan of JOG, its management team and of course the GBA.
And Serica:….
Having said extensively above that this is a good deal for both sides I can hardly add much to what I have already said. Serica has availed itself of 30% of the mid-case contingent resources from the Buchan field which alone are estimated to be in region of 70 million barrels of oil equivalent, making it the third largest pre-development field in the UKCS.
It is also worth bearing in mind that the figure above does not include potential upside from either J2 or Verbier which will likely add to the development via a tie-back to the FPSO. Serica along with NEO and JOG are set to make GBA an outstanding part of the portfolio in a tax efficient way and as already mentioned at the forefront of the reduction of carbon in the North Sea.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are thoroughly delighted to announce the farm-out transaction with Serica Energy. Not only does it bring a further high-quality partner into the joint venture, but it unlocks exceptional value for the Company and delivers upon our overall objectives for the GBA farm-out strategy. The transaction provides JOG with multiple cash payments, but most importantly, a fully funded 20% working interest in the Buchan redevelopment project, transforming the Company and providing us with the springboard from which to realise long term shareholder value."
Mitch Flegg, Chief Executive of Serica commented:
"We are delighted with this transaction which gives Serica a significant interest in the proposed Greater Buchan Area project, potentially adding a third production hub and further resilience to Serica's North Sea portfolio. In common with our other hubs, the GBA plan involves utilising existing infrastructure - in this case an FPSO - with the possibility of exploiting multiple accumulations in the area. Moreover, the development has been designed to deliver an industry-leading low level of carbon emissions, consistent with Serica's objective of reducing the overall carbon intensity of its activities.
The transaction demonstrates the benefits of Serica's strong balance sheet. Our financial strength enables us to take advantage of suitable opportunities to expand the portfolio and we will continue to take a very proactive approach to business development, while also investing in our existing portfolio and paying dividends to shareholders. The transaction is structured such that most of the consideration payable by Serica is contingent and linked to making progress in the project.
Our participation will also be financially efficient with Serica benefiting from tax reliefs on its investment.
We congratulate Jersey Oil & Gas for having created and progressed the GBA project before recently transferring operatorship to NEO Energy. We look forward to working with them and NEO, including the latter's experienced and well-respected project team."
Serica Energy plc
("Serica" or the "Company")
Acquisition of Interest in Greater Buchan Area
London, 23 November 2023 - Serica Energy plc (AIM: SQZ) is pleased to announce the execution of agreements for the acquisition by its wholly owned subsidiary, Serica Energy (UK) Limited, of 30% non-operated interests in the P2498 and P2170 licences (together the Greater Buchan Area ("GBA")) from Jersey Oil & Gas ("JOG") (the "Transaction"). Completion is subject to regulatory, partner and interested party approvals and is expected to occur early in 2024. Following completion, the partners in the GBA will be Serica Energy (UK) Limited (30%), NEO Energy (50% and operator) and JOG (20%).
As a result of the Transaction, Serica will have the option of participating in the re-development of the Buchan field and other potential developments in the GBA.
Normally share price drops on ex-dividend day the amount of the payment…. that’s been & gone & from memory we dropped 6p on that day… not saying following the current trade we won’t go down … 🤷🏽♂️. would be nice to see directors etc reinvesting their dividend payments & showing support at these levels… unless of course they’re following suit & reinvesting elsewhere!! 😉
London, 21 November 2023 - Serica Energy plc (AIM: SQZ), a British independent upstream oil and gas company, announces that Andy Bell, Chief Financial Officer, has informed the board of his intention to step down from his role in the New Year when he will be replaced by Martin Copeland. Martin is currently a Principal at energy advisory firm Kirk Lovegrove & Co. Ltd. Martin has worked in oil & gas financing and advisory roles across a number of investment banks for more than 30 years. Some of his recent North Sea experience includes advising Premier Oil on their reverse takeover by Chrysaor to create Harbour Energy, advising JX Nippon on the sale of their UKCS business to Neo Energy and advising Tailwind Energy on their sale to Serica.
David Latin, Chairman of Serica commented:
"Following a very thorough recruitment process, the Serica board is delighted to announce that Andy's successor as Chief Financial Officer and Executive board member will be Martin Copeland. Martin will join Serica in the New Year at which point he will succeed Andy as CFO. Andy will remain with the company to effect a smooth transition. The board is very grateful to Andy Bell for his many years of service to the company and our sector."
Mitch Flegg, Chief Executive of Serica commented:
"Firstly, I want to pay tribute to Andy's achievements in the nearly 20 years he has been with Serica, initially as a Consultant and, since the signature of the Bruce, Keith and Rhum acquisitions, as VP Finance and then CFO. I would especially like to thank him for the unstinting support and sage advice he has given me personally since I became CEO in 2017. I also want to thank him enormously for agreeing to stay on to provide support during the CFO transition and to complete the work of creating an integrated finance function following Serica's acquisition of Tailwind."
"In Martin, we have secured a hugely capable successor to Andy who is well known to many of us from his years as an advisor. With his banking industry and advisory experience, Martin brings the full range of financial capabilities and relevant market knowledge to help Serica navigate the challenges of the capital markets and to deliver on our strategy designed to create value for our shareholders."
From the Parkmead RNS this morning on Skerryvore :
UK Skerryvore exploration well on track
· Parkmead is Operator with a significant 50% interest in the project
· Planned well will target the main stacked exploration prospects, at Mey and Chalk level (Tor Dip and Tor Strat), with Pmean STOIIP of approximately 43mmbbls, 98mmbls and 566mmbbls respectively
· The sub-surface team believe there is a high geological chance of success at the Mey of c.47% as this area is surrounded by fields producing from the same target interval
· Close to early-life infrastructure, giving potential for accelerated development
Some good news…. but will it have any effect 🤷🏽♂️
Serica Tweet :
Closing two intensive and well-attended days of the World Energy Capital Assembly this week, we were delighted to be awarded Mid Cap of the Year 2023, in a high quality group of finalists; Ithaca Energy plc and Energean plc. #oilandgas #UKenergy
https://x.com/sericaenergyplc/status/1725083367027146948?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Mitch’s tweet :
Only 4 years after our nomination for WECA's Small Cap of the Year, I was delighted this week to accept the 2023 Award for Mid Cap of the Year on behalf of our exceptional team here @SericaEnergyplc, acknowledgement of the success of our growth strategy. #oilandgas #energy
https://x.com/mitchfleggceo/status/1725207652412563904?s=46&t=uz3in5yMdDdYvqnOjeh9vg
For anyone who hasn’t seen the point of interest in yesterday’s initial I3 Energy RNS which was later amended & the removal of : ‘or Kyle/Banff (if i3 holds a working interest)’
For employees of i3 Energy North Sea Limited and i3 Energy plc:
· 1/3 on FDP of Serenity or Kyle/Banff (if i3 holds a working interest)
· 1/3 on acquisition of 2,500 boepd
· 1/3 on addition of 10 mmbbls of 2P reserves
Or 1/3 vesting each year, on the anniversary of the grant, if not vested in accordance to the conditions above.
Regardless of the above, 100% of the LTIP Awards will vest if there is a change of control of the Company or sale of 75% of the PDP reserves.
Any thoughts on this Mommur as I know you’re a holder, seems quite a deliberate mistake to make…. (could be wrong) .. I don’t quite get the Kyle/Banff part if Serica were looking at taking them out or going to farm in.. but who knows..
Latest Serica Energy tweet : Mitch Flegg speaking at World Energy Capital Assembly - London 13/14th Nov
https://x.com/sericaenergyplc/status/1721497647557607644?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Front page of the FT caught my eye…
Sunak to unveil bill for new licences to drill more new North Sea Oil & Gas.
https://x.com/ft/status/1721271187404149244?s=46&t=uz3in5yMdDdYvqnOjeh9vg
London, 31 October 2023 - Serica Energy plc (AIM: SQZ) is pleased to announce the award of a 100% interest in UK block 29/2a to its wholly owned subsidiary Tailwind Energy Chinook Limited in the UKCS 33rd Offshore Licensing Round. The award is subject to the execution of licence documentation.
Block 29/2a contains the decommissioned Kyle oil field. This field ceased production in June 2020 and the host FPSO at the time was subsequently removed. Serica will have no obligations in respect of the prior decommissioning as a result of the licence award. During an initial two-year licence period, Serica will carry out studies to determine the feasibility of re-developing the Kyle field by means of a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities. Serica has a 46.42% interest in the Triton FPSO vessel and a 64.63% interest in the Bittern field. Both are operated by Dana Petroleum. Serica's internal preliminary mid-case estimate of recoverable resources from the redeveloped field is about 9 million barrels of oil.
Mitch Flegg, Chief Executive of Serica commented:
"A key aspect of Serica's strategy is maximising the utilisation of existing infrastructure associated with its Bruce and Triton production hubs. An important element of this is adding hydrocarbon throughput from new sources as well as enhancing the contribution from fields that are already producing. This licence award adds another potential project to our hopper of near- and in-field opportunities. The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the Licence."
Where do you find the info Mommur? i’ve been looking to see what’s awarded.. any links?
First 27 North Sea licences awarded in 33rd UK oil and gas round
Offshore regulator says fossil fuels will 'continue to play a role in our energy mix for decades to come'.
https://www.pressandjournal.co.uk/fp/business/6237696/first-27-north-sea-licences-awarded-in-33rd-uk-oil-and-gas-round/#:~:text=The%2033rd%20oil%20and%20gas,closed%20on%20January%2012%202023.
This caught my eye.. taking a bit of a battering :
https://x.com/_gooseg/status/1714960107971231949?s=46&t=uz3in5yMdDdYvqnOjeh9vg