|
Centrica PLC on Tuesday announced the sale of a number of Spirit Energy Ltd’s southern North Sea assets to Serica Energy PLC. Centrica, the Berkshire, England-based energy provider and owner of British Gas, and which owns 69% of Spirit Energy, said it will receive around £39 million of the total £57 million sale price. The assets sold include Spirit Energy’s remaining 15% interest in the Cygnus gas field, and all other producing assets in the Greater Markham area and southern North Sea. The terms also include provision for two potential further cash payments by Serica of £3.5 million contingent on sanction of the drilling of an additional development well on Cygnus and the drilling of, and subsequent first production from, an infill well on Clipper South. Centrica Chief Executive Chris O’Shea said the disposal ‘generates value for our shareholders’, and is a ‘significant step in streamlining Centrica’s portfolio.’ Serica said the deal, which is expected to complete in the second half of 2026 is immediately cash generative, with around $100 million of free cash flow to be generated by the acquired assets by the end of 2028. The deal adds 18.7 million barrels of oil equivalent of 2P reserves to Serica’s portfolio, increasing Serica’s 2P reserves by 16%, at a cost of around $3.9/boe of 2P reserves. Serica CEO Chris Cox said: ‘The transaction will require only modest cash outflow on completion and is set to generate material cash flows, while also limiting our exposure to future decommissioning costs, enhancing Serica’s ability to create further value for shareholders through investing in growth and delivering attractive cash returns.’ Shares in Centrica were down 0.8% at 166.45 pence each in London on Tuesday, while Serica Energy climbed 3.2% to 167.62p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
