Serica Energy has finalized its acquisition of a 40% operated interest in the Greater Laggan Area (GLA) and associated infrastructure, along with operated licence interests in four near-field exploration blocks, from TotalEnergies.

Strategic Significance of the Acquisition

The acquisition establishes a new operated hub for Serica in the West of Shetland basin, providing current net production of just over 5,000 barrels of oil equivalent per day. It delivers multiple sources of organic growth potential and a strategic position as the key gas processing infrastructure host for a highly prospective basin on the UK Continental Shelf. Specific growth opportunities include the Glendronach tie-back, infill potential on the Tormore field, four exploration licences, and third-party business at the Shetland Gas Plant. The GLA asset is estimated to contain net proved and probable resources of 4 million barrels of oil equivalent, with estimated recoverable reserves of 5.4 million boe as of 31 December 2025.

Financial and Operational Details

The company settled a consideration of £1 and received a payment of $55.7 million, which reflects interim post-tax cash flows between the economic date of 1 January 2024 and the completion date. This transaction was part of a broader series of acquisitions agreed upon last year, involving assets from the Prax Group's upstream unit, TotalEnergies, and One-Dyas. Once all announced acquisitions are complete, the number of producing fields in Serica's portfolio is set to more than double, significantly increasing the diversification, reliability, and predictability of future production and revenues. The company's portfolio has the potential to exceed production rates of 65,000 boepd by the end of 2026.

2025 Financial and Operational Performance

In its annual results for 2025, Serica reported a 45% decline in earnings before interest, taxes, depreciation, amortization, and exploration expense (Ebitdax) to $210 million compared to the previous year. The company recorded a post-tax loss of $52 million, compared to a profit of $92 million a year earlier, following a previously announced non-cash deferred tax charge of $65 million taken in the first quarter of 2025. Production declined by almost 20% to 27,600 boepd for the year, impacted by unscheduled downtime at the Triton floating production, storage and offloading vessel. However, since production resumed from the Triton FPSO on 9 March, output has averaged over 50,000 boepd.