Serica Energy has expanded its North Sea asset base through the acquisition of Prax Upstream, which will add approximately 11.0 million barrels of oil equivalent (mmboe) to Serica’s reserves.
Serica Energy has agreed to acquire 100% of Prax Upstream Limited for an aggregate upfront consideration of $25.6 million. The transaction includes Prax Upstream’s existing purchase agreements with TotalEnergies and ONE-Dyas.
The acquisition comprises: 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.
Upon completion, Serica will receive an estimated $100 million in payments reflecting interim post-tax cashflows between economic dates and completion. The deal adds 11.0 mmboe of 2P reserves at an acquisition cost of $2.3/boe.
Completion is expected in Q4 2025, with the existing purchase agreements completing in Q1 2026.
“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,” explained Chris Cox, Serica’s CEO.
“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.”