REG - Serica Energy PLC - Result of General Meeting

Serica EnergyAnnouncement

27/01/2023 12:45

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RNS Number : 1419O  Serica Energy PLC  27 January 2023

Serica Energy plc

("Serica" or the "Company")

Result of General Meeting

 

London, 27 January 2023 - Serica Energy plc (AIM: SQZ), a British independent
upstream oil and gas company announces the result of its General Meeting
("GM") held earlier today in connection with the proposed acquisition by the
Company of Tailwind Energy Investments Ltd (the "Acquisition"). The resolution
contained in the Notice of Meeting dated 9 January 2023 was put to the GM,
voted on by way of a poll, and duly approved.

 

The total number of votes received on the resolution put to the GM, (as more
fully disclosed in the Notice of Meeting available on the Company's website),
was as follows:

 

 

Resolution #1: to allot shares in the Company up to an aggregate nominal
amount of US$11,104,812.40 in connection with the proposed acquisition by the
Company of Tailwind Energy Investments Ltd

 

 

 Votes         %        Votes Against  %        Votes         % of ISC Voted**  Votes

 For*                                           Total                           Withheld

                                                                                ***

 139,085,086   74.32%   48,067,075     25.68%   187,152,161   68.56%            1,007,267

* Includes discretionary votes.

**ISC means issued share capital. Total voting rights of the shares in issue:
272,962,213.

*** A vote withheld is not a vote in law and is not counted for the purposes
of the calculation of the proportion of votes 'For' and 'Against' a
resolution.

 

Subject to the satisfaction of the conditions to completion of the Acquisition
by that time, the Company continues to expect completion of the Acquisition to
occur in March 2023. Subject to the completion of the Acquisition, application
will be made to the London Stock Exchange for the enlarged share capital to be
admitted to trading on AIM, which will include the 111,048,124 consideration
shares to be issued pursuant to the Acquisition.

 

 

Mitch Flegg, Chief Executive of Serica, commented:

"We appreciate the support of our shareholders.

 

The proposed Tailwind transaction represents a rare opportunity to acquire a
successful company with an outstanding portfolio of assets that are
complementary to the existing Serica portfolio. The significant increase in
production, reserves and short-cycle growth opportunities will establish
Serica as an operating company of increased scale and technical diversity
whilst maintaining financial strength, retaining a net cash position at
completion and with strong ongoing cashflows thereafter. This financial
strength will allow Serica to continue its programme of returns to
shareholders whilst supporting an ongoing campaign of M&A and organic
investments."

 

 

Enquiries:

 

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

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

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

 Rothschild & Co. (Financial Advisor)              +44 (0)20 7280 5000
 James McEwan / Murray Yuill

 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. Over 85% of Serica's production is
natural gas, a key element in the UK's energy transition, and the Company is
responsible for 5% of the gas produced in the UK. The Company 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. The Circular to shareholders on the
proposed transaction was issued on 9 January 2023 and 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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