Serica Energy plc has secured a 50 percent working interest in licenses P2400 (Skerryvore) and P2634 (Fynn Beauly) in the North Sea, after acquiring Parkmead (E&P) Limited (PUK) from Parkmead Group Plc (Parkmead).
The company said in its media release that the bill for 100 percent of shares in PUK reached GBP5 million ($6.4 million). An additional deferred consideration of GBP9 million ($11.5 million) will be paid in stages over the next three years, as well as contingent payments linked to certain development milestones, Serica said. Contingent payments, according to the company, are payable upon approval by the North Sea Transition Authority (NSTA) for the Skerryvore or Fynn Beauly field development plan (FDP). Furthermore, the payments for the FDPs are capped at GBP 30 million ($37.9 million) and GBP 90 million ($113.6 million), for the Skerryvore or Fynn Beauly licenses, respectively.
Serica Energy has acquired a majority stake in the P2400 license, consolidating its position in the Skerryvore project. The company already owned a 20 percent interest in the project through Serica Energy (UK) Limited. This strategic move simplifies decision-making and provides flexibility for future projects. Serica now holds a 70 percent interest in the license and will assume the role of operator, Serica said.
The P2634 license was awarded in the 33rd Licensing Round in July 2024 to PUK, as operator, and Orcadian Energy, and includes the Fynn Beauly heavy oil discovery, Serica said. The current license commitment is limited to technical studies to assess the feasibility of reducing Fynn Beauly’s oil viscosity using enhanced oil recovery techniques.
Serica said that PUK has a total of GBP 197 million in carried forward ring-fence corporation tax losses, GBP 181 million in supplementary charge tax losses, GBP 1 million in losses from the Energy Profits Levy, and GBP 12 million in activated investment allowances as of the economic date of the transaction on June 30, 2024. PUK does not have any employees, it said.
According to Serica, the deal is expected to be finalized sometime in the first half of 2025. This is dependent on standard closing procedures and the transfer of PUK’s Dutch assets to a Parkmead affiliate, along with approval from the NSTA.
Source: by Paul Anderson for Rigzone Staff