Serica Energy 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). 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. 

Chris Cox, Serica's CEO, stated: 
“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.  

This 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.” 

BENEFITS OF THE ACQUISITION 

Completion 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: 

• Addition of 11.0 mmboe of 2P reserves(1) (as at 30 June 2025), at an acquisition cost of $2.3/boe(2) 
• 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) 
• A new operated hub for Serica in the West of Shetland basin with multiple sources of organic growth potential, including an infill well on the Tormore field, the Glendronach development, four exploration licences, and third-party throughput opportunities in the Shetland Gas Plant (‘SGP’) 

FINANCIAL HIGHLIGHTS 

Upon completion, Serica will pay an aggregate upfront consideration of $25.6 million and will receive payments totalling an estimated c.$100 million reflecting interim post-tax cashflows between the economic dates of each transaction and estimated completion dates 
In addition to the completion payments, Serica expects an incremental c.$50 million of Free Cash Flow(3) from the acquired assets in 2026 

(1) All 2P reserves and 2C contingent resources stated in this announcement are based on an independent evaluation carried out by Sproule ERCE, effective as of 30 June 2025, and assume that the Existing SPAs reach completion, and are irrespective of the underlying effective dates of the Acquisition or the Existing SPAs. The implied consideration per 2P boe represents the aggregate consideration of the transactions divided by the aggregate 2P boe as at 30 June 2025  
(2) Based on the aggregate upfront consideration  
(3) Based on a Brent oil price average of $66/bbl and NBP price of 80p/therm in 2026 

KeyFacts Energy: Serica Energy UK country profile   l   KeyFacts Energy: Acquisitions & Mergers news