Serica Vitality plc mentioned it signed a sale and buy settlement to accumulate the entire issued share capital of Prax Upstream Restricted from Prax Exploration & Manufacturing Plc.
Prax Upstream owns and is the operator of the Lancaster discipline west of the Shetland Islands in the UK’s (UK) North Sea, Serica mentioned in a information launch.
Prax Upstream can also be celebration to separate executed sale and buy agreements (SPAs) with TotalEnergies SE and ONE-Dyas for the acquisition of sure property, in line with the discharge.
The acquisition, together with completion of the present SPAs, consists of a 40 p.c operated curiosity within the Better Laggan Space (GLA), a ten p.c curiosity within the Catcher Subject, a 5.21 p.c curiosity within the Golden Eagle Space Improvement, and a one hundred pc curiosity within the Lancaster discipline.
The full mixture upfront consideration for the transaction is $25.6 million. Completion of the acquisition is anticipated within the fourth quarter, and for the present SPAs within the first quarter of 2026, Serica mentioned.
The acquisition will add 11 million barrels of oil equal (mmboe) of 2P reserves. The property related to the present SPAs produced 7,900 barrels of oil equal per day (boepd) within the first half of 2025, whereas the Lancaster discipline produced 5,900 boepd, in line with the discharge.
The property will present a brand new operated hub for Serica within the West of Shetland basin with a number of sources of natural progress potential, together with an infill properly on the Tormore discipline, the Glendronach growth, 4 exploration licenses, and third-party throughput alternatives within the Shetland Gasoline Plant (SGP), the corporate mentioned.
The SGP was commissioned in 2016 and is the most recent onshore gasoline processing facility within the U.Okay. The plant and its related infrastructure function the important thing gathering system for gasoline coming from the extremely potential West of Shetland basin.
Serica mentioned it expects that the power will facilitate the exploitation of infrastructure-led growth and exploration alternatives within the space, together with new sources of third-party throughput that provide the potential to increase the productive lifetime of the SGP. The corporate cited the approaching start-up of manufacturing from the Shell-operated Victory discipline within the fourth quarter as a “prime instance” of such a chance.
The GLA property, positioned northwest of Shetland, encompass eight wells from 4 fields related as subsea tiebacks to, and operated from, the SGP. Manufacturing was measured at 5,000 boepd internet to TotalEnergies within the first half, 90 p.c of which was gasoline. GLA gasoline is evacuated from the SGP by means of the Shetland Islands Regional Gasoline Export System pipeline into the Frigg UK Affiliation pipeline to the St Fergus terminal, in line with the discharge.
Serica CEO Chris Cox mentioned, “This transaction represents an additional step within the supply of our progress technique – it diversifies our portfolio, will increase our reserves and sources, and enhances near-term cashflows at a pretty valuation. The addition of GLA brings Serica a brand new manufacturing hub, with operatorship of the Shetland Gasoline Plant. There may be a direct enhance to manufacturing and reserves, plus the scope to create important worth for shareholders by means of a number of subsurface, business, and additional [mergers-and-acquisition] alternatives”.
“The transaction illustrates Serica’s skill to maneuver shortly, using our sturdy stability sheet and ability units to make an acquisition with strategic potential on enticing phrases,” Cox added.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
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