Serica Energy - transformational deal or simply more troublesome assets?
Serica Energy’s shares were suspended on Monday, 19 November, following the announcement of a significant acquisition by Serica of some of BP’s North Sea assets. A big uplift to Serica’s share price could be on the cards on readmission as the impact of the transformational deal sinks in. AimZine considers whether investors will be enthusiastic about the deal or be concerned about the acquisition of mature and difficult North Sea assets?
Serica Energy (AIM:SQZ) In a major announcement on Monday 19th November Serica’s board described their deal to buy BP’s share in 3 producing North Sea fields as “Transformational”. The Transformation word is used a lot these days to describe large deals but in this case the “T word” seems wholly appropriate. The assets purchased from BP will increase Serica’s oil and gas production at least seven-fold with 85% of this production being much needed gas. Serica has achieved this amazing deal without issuing any further shares or spending any of its significant cash pile and without taking on any significant…