Oil and gas company Serica Energy said Tuesday that the conditions precedent in relation to its proposed acquisition of Tailwind Energy from Tailwind Energy Holdings LLP had been satisfied, save for the condition precedent relating to the Admission of the Completion Consideration Shares.
Completion will occur immediately following Admission of the Completion Consideration Shares.
In connection with the Acquisition, up to 111,048,124 new ordinary shares in Serica (the "Consideration Shares") will be allotted and issued.
An application has been made to the London Stock Exchange for 108,170,426 Consideration Shares (the "Completion Consideration Shares") to be admitted to trading on AIM ("Admission").
Serica expects admission will take place at 8.00 a.m. on or around March 27, 2023, and that dealings on AIM will start at the same time.
When issued, the consideration shares will be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of US$0.10 each in the capital of the company.
Back in December, when it first announced the agreement to acquire Tailwind Serica said that, with the merger, its estimated proforma combined production in 2023 would rise significantly to between 40,000 boe/d and 45,000 boe/d putting Serica in the top 10 UKCS producers, and top 3 UKCS listed independent producers.
The company also said that through the Tailwind agreement, it was acquiring fully developed 2P reserves of 42 million boe to create a combined portfolio with 2P reserves of 104 million boe.
Serica said that the merger would create a balanced spread of production from two main hubs - Bruce and Triton - which have separate transportation infrastructure, Serica's number of producing fields will increase from 5 to 11 with "substantial upside and organic growth opportunities," and elarged group will operate more than 80 per cent of its net production.
All current Tailwind employees will be offered positions in the enlarged group, Serica said at the time.