Serica Energy has signed a sale and purchase agreement to acquire 100% of the issued share capital of Prax Upstream (‘Prax Upstream’) from Prax Exploration & Production (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.
Chris Cox, Serica’s CEO, says: ‘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.’
Benefit’s of the acquisition include:
• Addition of 11.0 mmboe of 2P reserves1 (as at 30 June 2025), at an acquisition cost of $2.3/boe2
• 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’)
