Serica Energy has confirmed it is in talks with fellow North Sea E&P independent EnQuest on a potential combination of the two companies.
According to Serica’s board, this could deliver benefits such as increased scale and diversification, synergies and a stronger platform for further growth.
The transaction would likely be structured as an all-share offer by EnQuest for Serica via a reverse takeover under the UK Listing Rules. It could involve a return of capital to Serica shareholders on completion, with the same shareholders owning a majority of the shares in the enlarged company.
Both companies announced acquisitions recently.
In January, EnQuest agreed to acquire Harbour Energy’s oil and gas production business offshore Vietnam for $84 million. It includes a 53.125% stake in the Chim Sáo and Dua fields in the Natuna Sea, both developed originally by Premier Oil. The transaction should close during the second quarter of this year.
And Serica Energy agreed to acquire Parkmead (E&P) for up to £14 million ($17.9 million), according to a Dec. 12 company news release. Further payments could follow, linked to a potential future development of the Skerryvore prospect or the heavy-oil Fynn Beauly discovery. The transaction is set to close in the first half of 2025.
