Serica Energy completes acquisition of Tailwind

Serica Energy plc confirmed it had now successfully completed its acquisition of Tailwind Energy Investments Ltd from Tailwind Energy Holdings LLP.

FURTHER DEALS

The company said it now had a balance 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.

Chief executive Mitch Flegg added that the transaction had created a portfolio of assets which provided both greater resilience and an increased range of organic growth opportunities.

“Moreover, this has been achieved while preserving the company’s financial capacity to invest in its existing assets, execute further acquisitions and make sustained cash returns to shareholders.”

TAX REGIME

Chairman Tony Craven Walker said that the combined entity was “uniquely placed” to prosper as an important contributor to the UK’s energy security in support of energy transition.

“However, this does require a more considered approach from Government to revisit the counter-productive tax levels imposed on the UK oil and gas industry and to structure a predictable and far less damaging tax regime to support the innovation and investment required, particularly in view of currently much reduced oil and gas prices.

“We look forward to the opportunity and the challenge.”

The company expects to announce its 2022 results on 13 April 2023.

MERCURIA

The completion of the acquisition results in Tailwind’s largest shareholder Mercuria Energy Group holding 96,618,142 shares in Serica.

Previously nominated non-executive directors Guillaume Vermersch, Mercuria’s chief financial officer, and Rob Lawson, Mercuria’s executive vice president have also now joined the Serica board.

Mr Lawson is expected to become a director of Mercuria in due course.

He is additionally a current director of the British American Football Association.