Serica Energy has struck a deal to buy Prax Upstream Limited, picking up a portfolio of UK North Sea assets including the Lancaster oil field.
The deal also includes a 40% operated stake in the Greater Laggan Area, 10% of the Catcher field, and 5.21% of the Golden Eagle Area Development. The £19million acquisition brings operatorship of the Shetland Gas Plant.
The portfolio adds 11 million barrels of reserves and delivered combined H1 2025 output of nearly 14,000 barrels per day
Chris Cox, Serica’s CEO, said: “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.”
He added: “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.”
Financially, Serica expects to receive around $100m (£74million) in interim cashflows between economic and completion dates, plus about $50m (£37million) of additional free cash flow from the new assets in 2026.
Mr Cox said: “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.”
FTSE100
The UK's flagship share index, the FTSE 100, was down five-points at 9,294 shortly after opening this morning.
Brent crude oil futures were down 0.36% at $66.73 a barrel.
Companies reporting today
- A G Barr - Half Year Results
- Close Brothers Group - Full Year Results