Serica Energy has acquired a portfolio of Southern North Sea assets from Spirit Energy for £57m.

The acquired assets comprise a 15% non-operated working interest in the Cygnus field, which is one of the largest producing gas fields on the UK continental shelf; a 25% non-operated working interest in Clipper South, and further operated and non-operated interests in gas fields across the Southern North Sea.

The transaction, which is set to complete in the second half of 2026, is expected to add 18.7 million barrels of oil equivalent to Serica’s portfolio, and will establish an operated production hub in the Southern North Sea.

Furthermore, the oil and gas firm said that the deal will generate $100m of free cash flow by the end of 2028.

Chief executive officer at Serica, Chris Cox, said the transaction is a "further step" towards delivering on its strategy and diversifying its asset base.

He added: "These are also assets I personally know well, and the Cygnus field in particular is an attractive addition to our portfolio given its high uptime, low emissions, and low operating costs. There is also the potential for further infill drilling opportunities across the portfolio, most significantly at Cygnus, where drilling is ongoing.

"The transaction will require only modest cash outflow on completion and is set to generate material cash flows, while also limiting our exposure to future decommissioning costs, enhancing Serica's ability to create further value for shareholders through investing in growth and delivering attractive cash returns."

Investment director at AJ Bell, Russ Mould, said the deal is one of a number of the past two decades where oil and gas assets have changed hands from larger operators to "smaller, more nimble ones".

He concluded: "The decision by Centrica’s subsidiary Spirit Energy to sell a collection of producing natural gas fields to Serica Energy is a deal in this vein.

"The disposal will free up Spirit’s time and resources for the development of the Morecambe Net Zero carbon storage project. Meanwhile, Serica gets an appreciable uplift to its oil and gas reserves and an immediate injection of cash flow.

"It expects to generate around $100m of cash from the assets by the end of 2028. That’s significant in the context of Serica’s £650m market valuation. On this basis you can see why the deal suits both parties."

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