Andrew Austin has a track record of dealmaking in the North Sea and has now set his sights on independent Serica Energy (LON: SQZ).
Some of his previous deals may strike a familiar cord for those following his journey.
Austin made his return to the North Sea market in 2020 with the launch of Kistos (LON: KIST) after his previous vehicle RockRose Energy was sold to Viaro Energy that same year for nearly £250 million.
As a major shareholder, Austin pocketed an estimated £66m from the deal.
IGas
A former investment banker, Austin founded the UK onshore oil and gas producer IGas Energy in 2004, which had partnerships with companies including Total E&P UK, GDF Suez and Swiss chemicals giant Ineos.
He stood down as CEO of IGas over a decade later when a deal with Ineos was completed in 2015, marking “a new phase of execution”.
At the same time, IGas cut its headcount by more than 25% and closed its office in Sterling, Scotland – which followed a moratorium on fracking in the country.
Austin then set up RockRose Energy as executive chairman, striking a flurry of deals to build up an asset base in the UK North Sea.
It started off with a modest portfolio thanks to deals with the likes of Japan’s Sojitz Corporation, Idemitsu, Dyas, Dana and Maersk Oil.
It then hooked a big fish with Marathon Oil’s assets in 2019, handing RockRose operatorship of the prolific Greater Brae Area.
RockRose and Kistos
Despite the run of successes as a broker, Austin had some resistance too.
Perhaps one of the big parallels with the situation with Serica was a rejected takeover bid for Independent Oil and Gas for £26.6m in 2019.
Like Serica with Kistos today, IOG argued then that RockRose had “undervalued” the company – and despite RockRose’s claims IOG would find it “challenging” to fund its plans, the firm has this year achieved first gas on a pair of projects.
Elsewhere, RockRose was ultimately ousted as operator of the Brae Area following a legal battle with Taqa and other partners, with concerns over lack of operational experience.
RockRose was then sold in 2020 to Viaro.
After a very brief hiatus, Austin set up Kistos – which is Greek for the RockRose family of watering plants – focussed on acquisitions in the UK and continental Europe.
Some high-profile deals since then include its maiden acquisition for Tulip Oil Netherlands (TON) last year, and completion this week of a 20% stake in the Greater Laggan Area in the West of Shetland from TotalEnergies for £123m.
Kistos and Serica have both made rejected bids for each other, but neither of these qualify as formal offers.
Under takeover rules, both companies have until August 9 to announce a firm intention to make offers or that they will not.
Shares in London-listed Serica Energy were up 13% from the start of the week, as of mid-day Wednesday, to £3.45.
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