Fossil Energy – Acquisition
Britain’s Serica Energy has agreed to acquire a portfolio of Southern North Sea gas assets from Spirit Energy and its affiliates for $74 million, strengthening its UK upstream position and increasing reserves and production.
The transaction has an effective economic date of January 1, 2025, with completion expected in the second half of 2026.
The deal includes a 15% non-operated interest in the Cygnus gas field, one of the UK Continental Shelf’s largest producing gas assets. Cygnus is operated by Ithaca Energy, which holds the remaining 85% stake.
The mid-life field began production in 2016 and currently has 11 wells. Net production to the acquired Spirit Energy interest averaged about 4,000 barrels of oil equivalent per day in the first half of 2025. An infill drilling programme is under way, with the first of four approved wells already on stream and a second well currently being drilled. Two additional wells are planned, with scope for further development drilling.
In addition to Cygnus, Serica will acquire a 25% non-operated stake in Clipper South and operated interests across assets in the Greater Markham Area. The transaction also includes interests in the Eris and Ceres gas fields, as well as a non-operated stake in Galleon.
Following completion, Spirit Energy will retain decommissioning liabilities on the operated assets, representing more than 75% of the total estimated decommissioning costs.
