Serica Energy has agreed to acquire Prax Upstream, expanding its portfolio of U.K. North Sea oil and gas assets and boosting its reserves, resources and production base.
Serica Energy signed a sale and purchase agreement to acquire 100% of the issued share capital of Prax Upstream from Prax Exploration & Production, in administration.
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 dubbed ‘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, according to Serica Energy.
“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,” said Chris Cox, Serica's CEO.
Completion of the Prax Upstream acquisition is expected in the fourth quarter of 2025, with completion of the agreements with TotalEnergies and ONE-Dyas in the first quarter of 2026.
The assets will add 11 million barrels of oil equivalent of 2P reserves as of June 30, 2025, at an acquisition cost of $2.3 per boe. Production in the first half of 2025 was 7,900 boepd from the TotalEnergies and ONE-Dyas assets and 5,900 boepd from Lancaster, which is expected to cease production in the first half of 2026.