Swiss commodity trading company Mercuria has nominated Guillaume Vermersch and Robert Lawson as new non-executive directors to the Serica Board and has also revised an offtake and marketing agreement with Serica


Serica Energy acquires Tailwind Energy. (Credit: Nico Franz from Pixabay)

UK-based oil and gas producer Serica Energy has completed its previously announced acquisition of Tailwind Energy Investments from Tailwind Energy Holdings.

In December last year, the company signed an agreement to acquire Tailwind Energy Investments and secured shareholder approval earlier this week.

Serica agreed to issue new shares worth £367m, assume Tailwind’s net debt of about £277m and pay £58.7m in cash upon closing of the deal.

The company’s attributes include a mix of gas and oil production focused around the Bruce and Triton hubs in the UK North Sea, with more than 80% of production from operated fields.

It also includes an ongoing short-cycle organic investments programme in 2023 and 2024.

The programme includes a second Light Well Intervention Vessel campaign on the Bruce field and infill wells on the Bittern, Gannet E, Guillemot North West and Evelyn fields.

Serica chief executive Mitch Flegg said: “We are delighted to have completed the acquisition of Tailwind and welcome the new members of the Serica team. This is an important and exciting moment for Serica.

“The transaction creates a portfolio of assets which provides both greater resilience and an increase in the range of organic growth opportunities.

“We look forward to providing more information in the coming weeks on the progress made in exploiting the existing producing fields in recent months and the plans for future investments in the enlarged portfolio.”

Serica said that the acquisition will be immediately accretive to reserves, production, cash flow and earnings per share.

The company’s estimated pro-forma production of the combined portfolio is expected to be between 40,000 and 47,000boe/d in 2023, supported by results of the Gannet GE-04 well.

Under a relationship agreement with Serica, Swiss commodity trading company Mercuria Energy has nominated Guillaume Vermersch and Robert Lawson as new non-executive directors to the Serica Board.

Serica and Mercuria have also agreed on a revised offtake and marketing agreement which was originally signed between Tailwind Energy and Mercuria Energy Trading.

Serica chairman Tony Craven Walker said: “As a result of this transaction, Serica has a broader asset spread with interests in two North Sea hubs, one of which it operates, and better exposure to an oil/gas mix.

“The combined entity is uniquely placed to prosper as an important contributor to the UK’s energy security in support of energy transition.

“Today I am delighted to welcome Guillaume Vermersch and Rob Lawson to the Serica Board. Their presence adds to the breadth, depth and diversity of the expertise represented by the Board which has grown with the business during the last few years.”