UK-based oil and gas company Serica Energy has agreed to purchase a portfolio of southern North Sea gas assets from Spirit Energy and its affiliates for an upfront consideration of $74m (£55.53m).
The agreement was signed through two new subsidiaries obtained from the acquisition of Prax Upstream from Prax Exploration & Production.
It will have an effective economic date of 1 January 2025, with completion expected in the second half of 2026 (H2 2026).
The acquisition features a 15% non-operated interest in the Cygnus gas field. Ithaca Energy operates the gas field and holds the remaining 85% stake.
This mid-life field field is reputed to be one of the largest producing gas fields on the UK Continental Shelf and started production in 2016.
It contains 11 wells that produced a combined total of 4,000 barrels of oil equivalent per day (boepd) net to the acquired Spirit Energy stake in H1 2025, with an infill drilling campaign currently under way.
Serica will also acquire a 25% non-operated interest in the Clipper South field and operated interests in assets in the Greater Markham Area.
The transaction also includes stakes in the Eris (54% operated working interest) and Ceres (90% operated working interest) gas fields, along with an 8.4% non-operated working interest in Galleon.
Upon closing, the seller will retain decommissioning liabilities on the operated assets, which represent more than 75% of the total estimated decommissioning costs.
Serica CEO Chris Cox said: “This transaction is a further step towards delivering on our strategy and diversifying our asset base through the addition of high-quality assets, adding over 15% to our reserves and significantly boosting production.
“These are also assets I personally know well, and the Cygnus field in particular is an attractive addition to our portfolio given its high uptime, low emissions and low operating costs.
“There is also the potential for further infill drilling opportunities across the portfolio, most significantly at Cygnus, where drilling is ongoing.”
In October this year, Serica Energy signed an agreement to acquire bp’s entire stake in the P111 and P2544 licences in the UK central North Sea.
