Serica Energy has strengthened its UK footprint through a triple M&A move, acquiring assets from Prax Upstream, ONE-Dyas and TotalEnergies for a combined US$25.6 million. The transactions add 11 MMboe of 2P reserves at an implied cost of US$2.3/boe, significantly below UK market averages. Alongside the acquisitions, Serica gains a substantial US$1.3 billion tax loss position and US$100 million in interim cashflows, supporting an expected 2026 production level above 50,000 boe/d.

Our analysis shows that the low entry price, limited decommissioning exposure and near-term production gains make this a highly cash-generative portfolio addition. While asset lives are short, upside from the Laggan area, particularly Glendronach, and integration with the Shetland Gas Plant enhance long-term value potential. The transactions highlight ongoing North Sea consolidation and Serica’s continued growth as a leading independent in the UK upstream sector.

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