Serica Energy has signed a sale and purchase agreement (SPA) to acquire Total UK’s interests in the Bruce and Keith fields (BK acquisition) and associated infrastructure (BK assets) in the North Sea.

Under the agreement, the company will acquire 42.25% stake in the Bruce field and 25% interest in the Keith field and BK assets.

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The acquisition is subject to completion of the previously announced purchase of stakes in Bruce, Keith and Rhum fields from BP (BKR Transaction), and certain regulatory, government and partner consents.

Serica Energy chief executive Mitch Flegg said: “This acquisition is a logical next step for us. It provides us with further scale, builds on our asset base and moves us closer towards our objective of being a highly efficient, profitable mid-tier operator focused on the UK North Sea, where we believe there is plenty of potential for further growth.

“For our shareholders, we are building considerable additional value whilst protecting our balance sheet through another innovatively structured deal that benefits both parties.”

“For our shareholders, we are building considerable additional value whilst protecting our balance sheet through another innovatively structured deal that benefits both parties.”

Pro-forma net 2P reserves of Serica Energy are anticipated to increase by around 11 million barrels of oil equivalent (mmboe), from 49 mmboe upon completion of the BKR Transaction to nearly 60 mmboe after completing the BK acquisition.

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Initially, cash payments of $5m will be made for the BK Acquisition, which will be followed by an additional cash payment of $15m in three instalments of $5m.

These instalments are subject to continued production from the Rhum field in three tranches approximately eight, 16 and 24 months following completion of the BK Acquisition.

Serica Energy said it aims to complete the transaction by the end of the third quarter of 2018.