Business
Acquisition of UK North Sea asset portfolio
Serica Energy PLC announced the acquisition of Prax Upstream Limited, including a 40% operated interest in the Greater Laggan Area, a 10% interest in the Catcher Field, a 5.21% interest in the Golden Eagle Area Development, and a 100% interest in the Lancaster field. The total upfront consideration is $25.6 million. The acquisition will add 11.0 mmboe of 2P reserves at a cost of $2.3/boe. Serica expects to receive payments totaling approximately $100 million, reflecting interim post-tax cashflows. Furthermore, an incremental $50 million of Free Cash Flow is anticipated from the acquired assets in 2026. The company's aggregate ring-fence losses as of June 30, 2025, will total $2.14 billion Ring Fence Corporation Tax, $1.83 billion Supplementary Charge, and $518 million Energy Profits Levy. Disclaimer*
About this update from Serica Energy Plc
[{"type":"text","content":"\n\n\n \n30 September 2025\n \nSerica Energy plc\n('Serica' or 'the Company')\n \nAcquisition of portfolio of assets in the UK North Sea\n \nSerica Energy plc (AIM: SQZ) is pleased to announce it has signed a sale and purchase agreement to acquire 100% of the issued share capital of Prax Upstream Limited ('Prax Upstream') from Prax Exploration & Production Plc (in Administration) (the 'Acquisition'). Prax Upstream holds a 100% interest in, and is the operator of, the Lancaster field. In addition, Prax Upstream is party to separate executed sale and purchase agreements with TotalEnergies and ONE-Dyas for the purchase of certain assets ('Existing SPAs'). Consequently, the Acquisition, including completion of the Existing SPAs, comprises a 40% operated interest in the Greater Laggan Area ('GLA'), a 10% interest in the Catcher Field, a 5.21% interest in the Golden Eagle Area Development ('GEAD') and a 100% interest in the Lancaster field. The total aggregate upfront consideration is $25.6 million.\n \nChris Cox, Serica's CEO, stated:\n\"This transaction represents a further step in the delivery of our growth strategy - it diversifies our portfolio, increases our reserves and resources, and enhances near-term cashflows at an attractive valuation. The addition of GLA brings Serica a new production hub, with operatorship of the Shetland Gas Plant. There is an immediate boost to production and reserves, plus the scope to create significant value for shareholders through multiple subsurface, commercial, and further M&A opportunities.\n \nThis transaction illustrates Serica's ability to move quickly, utilising our strong balance sheet and skill sets to make an acquisition with strategic potential on attractive terms.\"\n \nBENEFITS OF THE ACQUISITION\nCompletion of the Acquisition is expected in Q4 2025 and of the Existing SPAs in Q1 2026. Taken together, these transactions will enhance the Serica portfolio as follows:\n \n· Addition of 11.0 mmboe of 2P reserves[1] (as at 30 June 2025), at an acquisition cost of $2.3/boe[2]\n· A more diverse and robust production portfolio, with H1 2025 production of 7,900 boepd associated with the Existing SPAs and 5,900 boepd from the Lancaster field (expected to cease production in H2 2026)\n· A new operated...