Kistos makes fresh approach for Serica Energy

July 12, 2022

Kistos has tabled its third offer to Serica Energy, proposing a merger of the two companies.

Related To: Kistos

Serica is owner and operator of the Bruce (98%), Keith (100%) and Rhum (50%) assets consisting of over 25 wells, three bridge-linked platforms and extensive subsea pipelines and infrastructure that tie-in Rhum, Keith and the Western Area of Bruce to the Bruce facilities.

Offshore staff

'A merger of the two companies would grow their gas production at a time of high commodity prices and expand Serica's footprint into the West of Shetlands, where Kistos has just completed its Greater Laggan Area acquisition from TotalEnergies. Both companies have material near-field exploration activity and with combined production of 40,000 boe/d, there is sufficient cash flow to pursue further growth opportunities,' analytics firm Welligence said July 12. — "A merger of the two companies would grow their gas production at a time of high commodity prices and expand Serica's footprint into the West of Shetlands, where Kistos has just completed its Greater Laggan Area acquisition from TotalEnergies. Both companies have material near-field exploration activity and with combined production of 40,000 boe/d, there is sufficient cash flow to pursue further growth opportunities," analytics firm Welligence said July 12.

LONDON — Kistos has tabled its third offer to Serica Energy, proposing a merger of the two companies.

Serica rejected the first two approaches, then submitted a counter-proposal which according to Kistos, would have given Serica’s shareholders a 72% interest in the combined group.

Kistos’ board declined that offer and has now written to Serica’s shareholders in an attempt to persuade them of the logic of merging the two companies’ portfolios.

Serica operates the Bruce gas-condensate complex in the UK northern North Sea, while Kistos has gas production interests in the Dutch North Sea.

Yesterday, the company confirmed its entry into the Laggan-Tormore area gas development west of Shetland.

Previously, Serica’s board has stated that it can see “industrial logic” in the merger.

Kistos claims a combination would create a leading listed North Sea independent, with about 86% of its reserves operated, 85% gas-weighted production, and with potential for growth, noting that its own management team has a track record of M&A execution and resource development.

In its latest statement, Serica’s board said it was considering its position, but there can be no certainty that an offer will be made, or as to the terms of any such offer.

07.12.2022

See the update to this story at:

Serica responds to Kistos merger offer