$25.6M acquisition expanding Serica’s North Sea footprint

September 30, 2025, by Dragana Nikše

The UK-based upstream oil and gas player Serica Energy has signed a sale and purchase agreement to acquire Prax Upstream, a subsidiary of compatriot Prax Exploration & Production.

According to Serica, the deal entails a corporate acquisition of Prax Upstream, which holds a 100% interest in the Lancaster field. It will also encompass separate executed sale and purchase agreements (SPAs) Prax is involved in with TotalEnergies and ONE-Dyas for interests in the Greater Laggan Area (GLA), Catcher field, and the Golden Eagle Area Development (GLED).

The total aggregate upfront consideration is $25.6 million. The completion of the acquisition is anticipated in Q4 2025, while the SPAs are expected to close in Q1 2026. In addition to boosting its reserves, Serica expects these transactions to give it access to a new operated hub in what it says is a highly prospective West of Shetland basin.

While the deal entails future decommissioning costs for Serica, the company estimates that its portfolio decommissioning liability per 2P barrel will remain amongst the lowest in the UK North Sea. Furthermore, the company said it will work with partners on extending the productive life of the facilities by increasing production and securing third-party throughput.

Serica’s CEO, 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 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.”

Pax acquisition

One part of the acquisition is the Lancaster oil field, in which Prax Upstream owns a 100% interest. Lancaster produced an average of 5,900 bopd of oil in the first half of 2025 via the Bluewater-owned and operated FPSO Aoka Mizu.

The FPSO’s operator is eyeing a potential new contract for the unit at the Sea Lion project in the Falkland Islands, while Lancaster is expected to stop producing in Q3 2026. The field’s 2P reserves amounted to 2.6 mmboe on June 30, 2025.

Once the deal is completed, Serica will also assume the rights and obligations of Prax Upstream in relation to an agreement the latter’s subsidiaries signed with TotalEnergies E&P UK for a 40% operated interest in the GLA. The completion of this acquisition, which has a total consideration of £14.5 million, or around $18.9 million, is expected in the first half of 2026.

Located north-west of Shetland, the assets comprise eight wells from four fields connected as subsea tiebacks to, and operated from, the SGP. The GLA assets had net 2P reserves of 4.6 mmboe and 2C resources of 5.4 mmboe as of June 30, 2025.

After the acquisition, Serica will become the operator of the Laggan, Tormore, Glenlivet, Edradour, and Glendronach fields and the onshore SGP. The acquisition also encompasses the associated infrastructure usage rights and operated license interests in four near-field exploration blocks in the SGP catchment area.

In the first half of 2025, production totalled 5,000 boepd net to TotalEnergies. 90% of this was gas. While the production was in decline, Serica believes there is potential to offset this through organic projects, including an infill well on Tormore and development of the Glendronach discovery. The company believes the exploration blocks hold estimated unrisked net mean prospective resources of over 400 mmboe.

Gas from the GLA is transported from the SGP through the Shetland Islands Regional Gas Export System (SIRGE) pipeline into the Frigg UK Association (FUKA) pipeline to the St Fergus terminal. Commissioned in 2016, GSP is claimed by Serica to be the newest onshore gas processing facility in the UK.

ONE-Dyas acquisition

Valued at $6.75 million, the ONE-Dyas acquisition is expected to complete in the first half of 2026. It comprises a 10% non-operated working interest in the Catcher field and a 5.21% interest in the GEAD fields in the Central North Sea. The former is operated by Harbour Energy and the latter by CNOOC.

In H1 2025, the assets delivered a combined net production of 2,900 boepd. This acquisition is expected to bring net 2P reserves of 3.8 mmboe and 2C resources of 0.5 mmboe, as of June 30, 2025.

This comes on the heels of issues Serica has been experiencing with its FPSO Triton. After it was restarted in July 2025, the ramp-up of the unit, which was shut down in the aftermath of Storm Éowyn, has been slower than expected. The latest setback for the unit was related to issues within the FPSO’s compression trains.