Serica Energy has signed an agreement to acquire the entirety of BP’s stake in the Culzean field, located in the UK Central North Sea.

The deal is for an upfront cash consideration of $232m, but terms also include provision for two further cash payments contingent on successful production from a large exploration opportunity on one of the licences and changes to the UK ringfencing fiscal regime.

The company plans to fund the consideration through a combination of interim cashflows from the Culzean interest and existing financial resources, including cash and undrawn amounts under an existing $525m lending facility.

It also considering putting in place a new acquisition facility, which would be refinanced in due course via increased debt facilities to reflect larger, more diversified and

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