Serica Energy has agreed to acquire a portfolio of Southern North Sea gas assets from Spirit Energy in a £57million transaction that will significantly boost production, reserves and cash flow.
The independent operator said the deal, expected to complete in the second half of 2026, will add around 13,500 barrels of oil equivalent per day to pro-forma production and increase 2P reserves by 16%.
The effective economic date is 1 January 2026, with interim cash flows expected to materially offset the upfront consideration.
The assets include a 15% non-operated interest in the Cygnus gas field – one of the UK Continental Shelf’s largest producers – alongside interests in Clipper South, Galleon, Eris, Ceres and a suite of operated fields in the Greater Markham Area.
Serica said the acquisition is immediately cash generative, with around $100 million of free cash flow expected to be generated by the assets by the end of 2028. The seller will retain more than 75% of total decommissioning liabilities across the portfolio.
Chris Cox, chief executive of Serica Energy, said: “This transaction is a further step towards delivering on our strategy and diversifying our asset base through the addition of high-quality assets, adding over 15% to our reserves and significantly boosting production.
"These are also assets I personally know well, and the Cygnus field in particular is an attractive addition to our portfolio given its high uptime, low emissions, and low operating costs. There is also the potential for further infill drilling opportunities across the portfolio, most significantly at Cygnus, where drilling is ongoing.
“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.”