Independent oil and gas exploration/production company Serica is in discussions with Enquest regarding a possible all-share merger.

Serica has a market capitalisation worth £500 million with both companies considering the merger from the perspective of increasing both scale and diversification.

According to analysts, Serica is set to reach a capitalisation of £800 million this year. Just as Serica’s sales dropped significantly over the past few years, so have those of EnQuest.

Serica expressed how the deal being considered will come with a good structure in the form of a total share offer from EnQuest. It is also due to feature capital returning to existing Serica shareholders.