Finder Energy Holdings Limited (ASX:FDR), an Australian oil and gas exploration company focused on creating shareholder value through exploration, appraisal and development of quality assets, has announced a farmout agreement with Serica Energy (UK) Limited. Under the agreement, Serica will acquire a 40% interest in Seaward Production Licence P2530, with Finder retaining a 20% interest and operatorship of the Licence.
The transaction is contingent upon the North Sea Transition Authority (NSTA) extending the Licence term and approving the transfer to Serica, along with other necessary consents. The NSTA has indicated it will grant a nine-month extension to Phase B, until 31 August 2026, and a twelve-month extension to Phase C, until 31 August 2028. Finder is actively working to fulfil the remaining conditions precedent, with the aim of completing the transaction before the end of the year.
The consideration payable to Finder includes £500,000 (approximately A$1 million) upon completion, a carry of Finder’s share of joint venture costs to the end of Phase B, and £936,000 (approximately A$1.9 million) contingent upon the Licence transitioning to Phase C. P2530 contains the Wagtail Discovery (19 MMbbl Gross 2C Contingent Resources) and the low-risk Marsh and Bancroft exploration prospects.
The extension of Phase B will facilitate additional development engineering feasibility studies to assess the integration of Wagtail with the Triton FPSO and its associated subsea infrastructure. These studies are crucial for determining whether to proceed to Phase C, which would involve drilling an appraisal well on Wagtail, or to discontinue the Licence at the end of Phase B. With Serica joining the P2530 joint venture, both owners of the Triton FPSO will now be partners in P2530 which will facilitate development in the event of a successful appraisal of Wagtail. This announcement has been authorised for release by the CEO of Finder.
