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Serica Energy has agreed to acquire Prax Upstream, the operator of the Lancaster oilfield in the UK North Sea, for USD 25.6 million. The deal includes a 100% interest in Lancaster, a 40% operated interest in the Greater Laggan Area, a 10% interest in the Catcher Field, and a 5.21% interest in the Golden Eagle Area. The acquisition is expected to generate an additional USD 50 million in free cash flow by 2026 and add around 11 million barrels of oil equivalent to Serica's reserves. This step strengthens Serica's operational presence and financial position in the North Sea.
Serica Energy has announced plans to acquire Prax Upstream, the sole operator of the Lancaster oilfield in the UK North Sea, for USD 25.6 million. The acquisition also includes interests in several other North Sea assets: a 40% operated stake in the Greater Laggan Area, a 10% interest in the Catcher Field, and a 5.21% interest in the Golden Eagle Area Development. Advertisement
The acquisition is expected to add approximately 11 million barrels of oil equivalent (mmboe) to Serica's proven and probable reserves at a cost of USD 2.3 per barrel. The Lancaster oilfield transaction is set to complete in the fourth quarter of 2025, while the interests in Greater Laggan, Catcher, and Golden Eagle are expected to be finalized in the first half of 2026, subject to regulatory approvals, including from the North Sea Transition Authority.
Serica anticipates that the combined assets will generate around USD 50 million in additional free cash flow by 2026. The transaction will also allow Serica to benefit from interim post-tax cash flows of approximately USD 100 million, reflecting net cash flows from the Catcher and Golden Eagle Area interests from January 1, 2024, until the completion date.
Prax Exploration & Production, the parent company of Prax Upstream, entered administration earlier this year, making the assets available for acquisition. Prax had previously acquired the Lancaster field from Hurricane Energy in 2023 for USD 250 million, as part of its strategy to diversify operations and increase cash flow.
The acquisition positions Serica Energy to strengthen its portfolio in the North Sea, enhancing both operational control and financial potential. It also reflects Serica's strategy of acquiring high-quality assets at favorable costs to improve reserves, cash flow, and overall market presence.
Source Reuters
5th Jun, 2025
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