Page 16 - EurOil Week 30 2022

EurOil PROJECTS & COMPANIES EurOil

Serica rejects another takeover

bid from Kistos

UK SERICA Energy has rejected yet another take- non-organic growth.
over offer from fellow London-listed North Sea Serica has said while the latest one repre-
Serica has rejected player Kistos at a valuation of nearly GBP1.4bn sents an increase in its valuation, most of that
several offers from ($1.2bn), saying that the bid undervalues the UK increase reflects the rise in Kistos’ share price
Kistos. producer. over the past two weeks. The company’s main
Kistos disclosed details of the proposal on assets are the Bruce, Keith and Rhum gas
July 25, which consisted of a cash-and-stock fields in the north North Sea, and the Colum-
offer of GBP4.25 per share – a 19% premium to bus and Erskine deposits in the central North
Serica’s closing price. Kistos also proposed that Sea. It said that the latest offer failed to take
Serica chairman Tony Craven Walker should into account Serica’s investment plans or its
take on the same role at the combined company, potential high-impact North Eigg exploration
while Kistos chairman Andrew Austin assumes well.
the role of CEO, replacing existing Serica CEO “Following careful consideration, the board
Mitch Flegg. of Serica, together with its financial advisors, has
Kistos has made several offers to buy Serica unanimously rejected the Kistos revised possible
this year. Its last bid worth GBP1bn was rejected order,” the company said. “The board reiterates
on July 12, and it made two earlier ones in May its position that it will not recommend any deal
and June. It argues that the combined entity on terms which it believes are unattractive to
would be a leading North Sea independent, its shareholders and wider stakeholders. Serica
with a market capitalisation of close to GBP2bn, shareholders are strongly advised not to take any
and significant options for further organic and action.”™
NEWS IN BRIEF

Fresh spat with Greece in Parliamentary commission hike of the price of natural gas for August
Meanwhile, Bulgargaz is requesting a 54%
prospect with Turkey set to send says Bulgaria’s Bulgargaz to around BGN287 (€146.7). However, as
the constitutional court has ruled that the
drillship to Mediterranean provoked Gazprom to halt appointment of a new head of the energy
and water regulation body was violating the
Another spat over maritime territory and supplies constitution, the committee cannot decide on
gas reserves between Ankara and Athens the request until parliament appoints a new
looks in prospect. Turkish energy minister A temporary parliamentary commission chairman.
Fatih Donmez has announced that Turkey ruled that Bulgaria’s state-owned gas As Bulgaria’s parliament is to be dissolved
will dispatch a drillship for hydrocarbon supplier Bulgargaz provided “manipulative on August 2, it is highly unlikely that
exploration to the Mediterranean Sea on information” on its correspondence with lawmakers will have time to elect a new head
August 9. Russian Gazprom and was responsible for of the regulator.
The Abdulhamid Han, which joined the Moscow’s decision to stop supplies of natural
country’s drillship fleet in May, has been gas at the end of April, Dnevnik news outlet
scheduled for the mission, Donmez said. reported on July 27. Lithuanian PM says the country
President Recep Tayyip Erdogan will At the end of April, Gazprom halted the
attend a ceremony marking the departure and supplies of gas to Bulgaria. At the time, the will not be short of gas
will reveal exactly where the ship is to conduct government of Prime Minister Kiril Petkov
its drilling activities, the minister added. and Bulgargaz’s representatives said that the Lithuania will not end up being short of
Turkish Petroleum Corp (TPAO) two decision was taken by the Russian company, gas even if Russia halts its gas export to the
years ago announced the discovery of an after Sofia refused to start paying in roubles. EU, the country’s Prime Minister Ingrida
estimated 320bn cubic metres (bcm) of gas at Bulgaria was not the only country to which Simonyte said. However, if there is a need for
the Tuna-1 well in the Black Sea. This volume the supplies were stopped for that reason. a tightening, household consumers will be
was upgraded to 405 bcm two months later, However, the commission ruled that given priority, she added.
with the field named Sakarya. In June 2021, Bulgargaz was seeking an excuse to stop EU member states reached an agreement
the company announced that it had found buying gas from Russia. That conclusion was on July 26 to reduce their natural gas
another 135 bcm in the Asmara-1 well, taking backed by opposition Gerb, the Movement consumption by 15% and cut down on the
the total volume discovered so far at Sakarya for Rights and Freedoms (DPS), the far-right use of Russian energy supplies. Since the
to 540 bcm. Energy analysts await verification pro-Russian Vazrazhdane and one MP of the invasion of Ukraine. Lithuania was the first
and confirmed flows from the field.. Bulgarian Socialist Party (BSP). EU member to phase out Russian gas and
There is no solid proofs that Bulgargaz was electricity from its energy mix.
responsible for the halted supplies. “We have a certain algorithm in Lithuania

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