Serica Energy (LSE:SQZ) has completed its £14.5 million acquisition of Prax Upstream Limited (PUL), bringing the Lancaster field into its portfolio. Production from Lancaster is expected to continue until mid-2026. As part of the transaction, Serica also acquires a $34 million cash balance, of which $12 million is earmarked for FPSO demobilisation obligations. The company anticipates closing additional acquisitions from TotalEnergies and ONE-Dyas during the first half of 2026. Serica has further strengthened its exploration portfolio by farming into a 40% interest in Licence P2530, covering the Wagtail oil discovery alongside several other prospects. The integration of PUL’s workforce — including experienced non-operated asset manager Alessandro Agostini — is expected to enhance Serica’s capacity to manage its growing portfolio.
Serica’s outlook is supported by a solid financial base and ongoing strategic expansion, though technical indicators currently signal bearish momentum. Persistent valuation concerns linked to a negative P/E ratio, along with regulatory and operational risks, continue to weigh on sentiment. Still, strong liquidity and an attractive dividend yield provide meaningful offsets.
More about Serica Energy
Serica Energy is an independent UK oil and gas producer with a broad asset base on the UK Continental Shelf. The company supplies roughly 5% of the UK’s natural gas and plays a key role in supporting the country’s energy transition. Since 2020, Serica has invested more than £1 billion into the domestic supply chain and maintains a balanced portfolio of oil and gas assets. Its core producing hubs include the Bruce, Keith, and Rhum fields in the Northern North Sea, as well as a mix of operated and non-operated interests linked to the Triton FPSO in the Central North Sea. Serica is listed on the AIM market of the London Stock Exchange.
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