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Serica Energy PLC on Tuesday said it has agreed to buy a portfolio of assets in the UK North Sea. The North Sea-focused oil and gas producer said it signed a deal to buy 100% of Prax Upstream Ltd from Prax Exploration & Production PLC, which is in administration. Prax Upstream holds a 100% stake in the Lancaster field and is its operator. It also is party to agreements with TotalEnergies SE and ONE-Dyasa for 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. Completion of the acquisition, for an upfront cash amount of $25.6 million, is expected in the final quarter of 2025. Purchase of the additional interests is expected to be completed in the first quarter of 2026. The Prax Upstream acquisition will bring in 11.0 million barrels of oil equivalent in proven and probable reserves and a new operated hub in the West of Shetland basin. Production from the Lancaster Field was 5,900 boe per day in the first half of 2025, though this will cease in the second half of 2026. Production from the other assets was 7,900 boe per day in the first half. Serica Chief Executive Officer Chris Cox 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. The addition of Greater Laggan Area 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 merger and acquisition opportunities.’ The acquisition leads to a more diverse and robust production portfolio, Serica said. Serica shares were up 8.4% to 186.60 pence each on Tuesday morning in London, giving the company a market capitalisation of £723.7 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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