Serica Energy PLC · LSE:SQZ
Serica Energy — Merger or Acquisition (December 2022)
15 slides from Serica Energy's merger presentation, Dec 20, 2022
Slide 1: Proposed Acquisition of Tailwind Energy
Proposed Acquisition of Tailwind Energy 20th December 2022
Slide 2: Disclaimer
Disclaimer • This document is personal to the recipient and has been issued by Serica Energy plc (the "Company"). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor
Slide 3: Contents
Contents 1. Major Acquisition by Serica 3 2. Overview of Transaction and Strategic Relationship 4 3. Creating a More Balanced Portfolio 5 4. Tailwind’s Portfolio: Rising Oil Production from Mix of Operated & Non-Operated Assets 6 5. Serica’s Portfolio: Mainly Operated, Gas Focused, With Growth Optio
Slide 4: Major Acquisition by Serica
Major Acquisition by Serica • Serica acquiring 100% of Tailwind for shares and cash • Serica becomes top 10 UK producer • Combined 2023 production expected to be 40-45 kboe/d • Combined production more than 80% operated • More balanced and diversified portfolio of assets • Complementary combination
Slide 5: Overview of Transaction and Strategic Relationship
Overview of Transaction and Strategic Relationship Transaction Structure New Strategic Investor • Serica acquiring 100% of Tailwind Energy Investments Ltd • Mercuria will become a strategic investor in Serica with a 25.2% holding • The consideration for the acquisition comprises: • Platform for grow
Slide 6: Creating a More Balanced Portfolio
Creating a More Balanced Portfolio Production Spread Across Two Main Hubs Serica + Tailwind Production in 2023 (estimate) c. 15% P2506 Bruce Hub 40-45 kboe/d c. 50% Triton Area Other c. 35% More Balance Across Gas and Oil Serica + Tailwind 2P Reserves at 1 January 2022 • Producing fields will more t
Slide 7: Tailwind's Portfolio: Rising Oil Production from Mix of Operated & Non-Operated Assets
Tailwind’s Portfolio: Rising Oil Production from Mix of Operated & Non-Operated Assets Asset Overview Key Orlando Tailwind Asset Norway Asset Working Interest Operator Status Mansell Triton FPSO 46.4% Dana Pet. Host infrastructure Bittern 64.6% Dana Pet. Producing Triton Area Gannet E Guillemot W /
Slide 8: Serica's Portfolio: Mainly Operated, Gas Focused, With Growth Options
Serica’s Portfolio: Mainly Operated, Gas Focused, With Growth Options Asset Overview Asset Working Interest Operator Status Bruce 98% Serica Producing P2506 Keith 100% Serica Producing Bruce Hub Rhum 50% Serica Producing P2501 (North Eigg) 100% Serica Exploration P2506 100% Serica Exploration Columb
Slide 9: Creates Scale with Financial Strength
Creates Scale with Financial Strength 2023 UKCS Net Production Peers (kboe/d)(1) 240 UK Listed Independents Top 10 UKCS Producer 200 3rd Largest UK Listed 160 Independent 120 185 Significant Net Cash 80 147 134 125 103 40 90 Low Decommissioning 59 48 40-45 40 Liabilities 0 (2) Enlarged group 8 Sourc
Slide 10: Combining Track Records of Growth and Operating Excellence
Combining Track Records of Growth and Operating Excellence 100 First oil from Bittern 90 Acquisition of BP’s B5 well Completed successful interests in BKR LWIV campaign on • Twenty-fold increase in Acquisition of Decipher Bruce Subsea wells 80 Acquisition of Triton interests production since 2017 fr
Slide 11: Strategic Investor with Wide Geographical and Energy Sector Reach
Strategic Investor with Wide Geographical and Energy Sector Reach • Multi-faceted stakeholder in Tailwind since 2018 as investor, lender and provider of marketing and hedging services • Committed strategic investor in Serica following the transaction Focus Commodity Complex • Mercuria will be the la
Slide 12: Strengthened Board and Leadership Team
Strengthened Board and Leadership Team Proposed Board Structure Senior Management Team Mitch Flegg CEO Andy Bell CFO Clara Altobell VP ESG and Business Innovation Steve Edwards CIO Antony Craven Walker Mitch Flegg Andy Bell Kate Coppinger Trevor Garlick Danny Fewkes Non-Executive Chairman CEO CFO No
Slide 13: Significant Financial Capacity
Significant Financial Capacity • Firepower for M&A, organic investments and sustained dividend • Strong cash flow from producing assets • Significant net cash position on completion • Refinancing of combined asset base planned in 2023 • Low decommissioning liabilities • Tailwind has significant UK r
Slide 14: New Phase of Growth for Serica
New Phase of Growth for Serica • Tailwind transaction materially increases reserves and production whilst maintaining balance sheet strength and significant net cash position • Diverse and resilient production portfolio with multiple organic investment opportunities such as Bruce and Triton infill w
Slide 15: Completion Expected in March 2023
Completion Expected in March 2023 Announcement (20th December 2022) Circular Published to Shareholders (Early January 2023) GM to Approve Allotment of Consideration Shares (January 2023) Fulfil Conditions Precedent (January – March 2023) Completion Upon Consideration Shares Being Admitted to Trading
Serica Energy — Merger or Acquisition (December 2022) on 6ix