Serica Energy has announced the completion of 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 provides Serica with the option of participating in the re-development of the Buchan field (formally re-named ‘Buchan Horst’) and other potential projects in the GBA, such as the development of the J2 and Verbier discoveries. Subject to project sanction and regulatory approval, the target for first production from Buchan is Q426.
On completion, Serica made a cash payment to JOG of US$7.5 million being US$6.8 million adjusted to reflect an economic date of 1 April 2023 as previously reported. The remainder of the potential consideration is in the form of a Buchan development cost carry and contingent amounts linked to certain future events as also reported in the RNS on 23 November 2023.
Mitch Flegg, Chief Executive of Serica, commented: “We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica’s North Sea portfolio. As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition.”