North Sea oil and gas producer Serica Energy (LON: SQZ) has launched an agreed bid for Pharos Energy (LON: PHAR), which has assets in Vietnam and Egypt. This will diversify the interests of AIM-quoted Serica Energy.
The bid is 28.6683p/share in cash plus a 4p/share special dividend. This values Pharos Energy at £145.7m. The share price closed at 24.8p on Friday. Serica Energy closed at 257.2p/share.
In June, the Pharos Energy board recommended a bid from Ratio Petroleum Energy of 23.0683p in cash for each share, plus a 4p/share special dividend and a final dividend of 0.9317p/share. The final dividend was paid on 18 July.
This bid follows last week’s signing of reserves-based lending facilities totalling $750m and a $205m letter of credit facility. This replaced a $525m facility. Net cash was $26m at the end of June 2026. Ratio has the right to match the Serica Energy bid.
Pharos Energy produced 5,398 barrels of oil equivalent per day net in 2025 and revenues were $114.6m. Infill drilling is planned in Egypt.