Atlantic-focused explorer Serica Energy has bought 18% interest in BP’s Erskine field.
The transaction covers the prospect in UK Central North Sea blocks 23/26a and 23/26b for $11.1million in cash plus 27 million new ordinary shares in the company.
The purchase has increased Serica’s proven and probable reserves from an estimated 5.2 million barrels of oil equivalent (boe) to an estimated 8.8 million boe.
“The agreement to buy an interest in the producing Erskine field from BP is an important step for Serica. As well as having operational and taxation synergies, it increases the reserve backing per share, enhances the overall value of our assets, generates a valuable income stream for the company and expands our existing interests in the Central North Sea,” said Tony Craven Walker, Serica’s chairman.
Additionally, the company is hoping the acquisition will help it bring the nearby Columbus field online via the Lomond facilities used by Erskine for export.
“The Lomond field facilities continue to offer one of the preferred development options for Columbus,” Craven Walker said.
“Securing an interest in Erskine provides us with a valuable foothold in a nearby producing field together with access to associated infrastructure and will assist us in our ongoing efforts to bring Columbus on to production.
“Serica intends to build upon this acquisition to secure a stronger presence in the UK as well as overseas where we are seeking to broaden our existing portfolio in Ireland, Morocco and Namibia.”
Purchase of Erskine extends to Serica’s Central North Sea portfolio which includes high-pressure/high-temperature (HPHT) prospects in block 22/19c (15% carried interest) as well as the Columbus field.
Recommended for you
