Oil and gas explorer Serica Energy has finally completed its cash and shares acquisition of an 18% stake in the UK North Sea’s Erskine field.
It is nearly a year since the London company first announced the deal, which is estimated to be worth about £8.7million.
Chairman Tony Craven Walker said the protracted transaction underlined the need for greater co-operation within the industry to open up shared access to key infrastructure.
Under terms announced last June, Serica agreed to stump up £6.5million and 27million shares for BP’s stake in Erskine.
But BP has paid back around £5.9million and received 13.5million shares after adjustments caused by the time lapse since the deal’s “effective date” of January 1, 2014.
The sale needed the consent of other partners in Erskine, as well as the Department of Energy and Climate Change.
It makes Serica a co-owner of the gas and condensate field alongside operator Chevron, with 50%, and BG Group (32%).
It also boosts Serica’s plans to export gas from its nearby Columbus field through the Lomond platform, which is Erskine’s export route.
Tony Craven Walker, chairman of Serica Energy, said: “The acquisition of an interest in the producing Erskine field from BP is an important step for Serica.
“In addition to improving our immediate cash resources and bringing cash flow to the Company, the purchase of an interest in Erskine brings us production from a field where there is significant room for improved productivity.
“The Erskine field has shown that it is capable of producing up to 4,000 boepd net to Serica but, in 2014, only averaged around 1,100 boepd as the result of poor infrastructure performance downstream (excluding the period of planned shutdown).
“Considerable work has been undertaken over the past eight months to radically overhaul facilities involving a substantial investment and a field shut-down.
“It is expected that this will enhance efficiencies considerably and it is the intention of all field participants to continue to seek ways of improving production performance.
“If we are successful in this endeavour it will bring significant benefits for Serica shareholders.”
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