REG - Serica Energy PLC - OFAC License Renewal

Serica EnergyAnnouncement

23/01/2023 07:00

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RNS Number : 4759N  Serica Energy PLC  23 January 2023

Serica Energy plc

("Serica" or the "Company")

OFAC License Renewal

 

London, 23 January 2023 - Serica Energy plc (AIM: SQZ), a British independent
upstream oil and gas company with operations centred on the UK North Sea,
announces that it has received a renewed License and secondary sanctions
assurance from the US Office of Foreign Assets Control ("OFAC") relating to
the North Sea Rhum field, in which the Company has a 50% interest. The License
and assurance will allow certain U.S. and U.S.-owned or controlled entities
and also non-U.S. entities to continue providing goods, services and support
to Rhum beyond 31 January 2023, when the current License was due to expire.
This will enable operations and production from the Rhum field delivering gas
supplies to UK consumers to continue unaffected. The new License is for a
period of two years with an expiry date of 31 January 2025. The License may be
renewed on application by Serica assuming the conditions continue to be met.

Mitch Flegg, Chief Executive of Serica Energy, commented:

"Once again we have secured a prompt renewal of the OFAC License for a period
of a further two years. We are grateful to the UK government and regulatory
authorities who have supported us in this process.

The renewal of this License satisfies one of the Completion Conditions
required for the acquisition by Serica of Tailwind Energy Investments Ltd."

 

Enquiries:

 

 Serica Energy plc                               +44 (0)20 7390 0230
 Mitch Flegg (CEO) / Andy Bell (CFO)

 Peel Hunt (Nomad & Joint Broker)                +44 (0)20 7418 8900
 Richard Crichton / David McKeown

 Jefferies (Joint Broker)                        +44 (0)20 7029 8000
 Tony White / Will Soutar / George Chrysostomou

 Vigo Consulting (PR Advisor)                    +44 (0)20 7390 0230
 Patrick d'Ancona / Finlay Thomson               serica@vigoconsulting.com

 

NOTES TO EDITORS

Serica Energy is a British independent oil and gas exploration and production
company with a portfolio of UKCS assets. The Company is responsible for 5% of
the gas produced in the UK and is pursuing growth opportunities that promote
UK energy security, fit within the parameters of the UK North Sea Transition
Deal and where it can add value by deploying its proven technical and
commercial expertise.

Serica operates the producing Bruce, Keith and Rhum fields in the UK Northern
North Sea, and the producing Columbus field in the UK Central North Sea.
Serica also holds a non-operated interest in the producing Erskine field in
the UK Central North Sea.

On 20 December 2022, Serica announced that it had entered into an agreement to
acquire the entire issued share capital of Tailwind Energy Investments Ltd
from Tailwind Energy Holdings LLP. A Circular was posted to shareholders on 9
January 2023, convening a general meeting to vote on the proposed issuance of
shares in connection with the transaction, which will be held on Friday 27
January. This can be found on our website www.serica-energy.com
(http://www.serica-energy.com) along with a presentation outlining the
transaction and an update on the recent operational and financial performance
of the two companies.

The Board of Serica, following an extensive period of due diligence over a
number of months, which included a fairness opinion in accordance with good
corporate practice believes the transaction will have a number of benefits for
Serica:

·     Diversifies and strengthens portfolio by adding a new production hub
in the Triton area, resulting in a balanced mix of gas and oil and an enlarged
hopper of short cycle organic growth opportunities

·    Significantly increases reserves and production, lifting Serica into
the top ten UK producers; with net production expected to increase by 50-80%
in 2023 and sustained until 2025 at above 40,000 boe/d, and reserves increased
by 67% as at 1 January 2022 before allowing for the full impact of Tailwind's
successful 2022 work programme

·     Expected to be immediately accretive to Serica's reserves,
production, cash flow and earnings per share

·  Enhances financial strength, retaining a net cash position at completion
with strong ongoing cashflows thereafter supporting M&A, organic
investments and returns to shareholders

·    Introduces Mercuria as a committed strategic investor with deep energy
experience and wide geographic reach

Further information on the Company can be found at www.serica-energy.com
(http://www.serica-energy.com) . The Company's shares are traded on the AIM
market of the London Stock Exchange under the ticker SQZ and the Company is a
designated foreign issuer on the TSX. To receive Company news releases via
email, please subscribe via the Company website.

 

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