Serica Energy has completed the acquisition of a portfolio of Southern North Sea assets from Spirit Energy, adding around 10,000 barrels of oil equivalent per day of production and 18.7 million boe of proved and probable reserves.
Serica made a net payment of $43 million (£33 million) to Spirit Energy at completion, comprising upfront consideration of $75 million (£57 million), reduced by post-tax cash flows generated between the transaction's effective economic date of January 1, 2025 and completion on October 1, 2026.
The acquired assets are now forecast to generate more than $200 million of free cash flow by the end of 2028, more than double Serica's expectation when the transaction was announced in December 2025.
The company attributed the increase primarily to a stronger gas price outlook, robust production expectations and the rephasing of some production and cash flows into the post-completion period.
The portfolio includes a 15% non-operated interest in the Cygnus gas field, a 25% non-operated interest in Clipper South and operated positions across assets in the Greater Markham Area, alongside other operated and non-operated Southern North Sea gas interests.
The assets also contain 3.4 million boe of 2C resources as of the January 1, 2025 effective economic date.
Spirit Energy is retaining decommissioning liabilities associated with the operated assets, which are expected to represent more than 75% of the portfolio's total estimated decommissioning liability.
The company said it will report production from the acquired portfolio as its Southern North Sea Hub.