REG - Serica Energy PLC - Trading and operations update

Serica EnergyAnnouncement

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RNS Number : 1770J  Serica Energy PLC  27 November 2025

 

27 November 2025

 

Serica Energy plc

('Serica' or 'the Company')

 

Trading and operations update

 

Serica Energy plc (AIM: SQZ) issues the following trading and operations
update in respect of the third quarter and first nine months of 2025.

 

Chris Cox, Serica's CEO, stated:

"Production rebounded in November to once again average above 50,000 boepd, a
level that more accurately reflects the potential of our portfolio. The
expected near-term addition of Lancaster production, following completion of
our acquisition of Prax Upstream, will add a further short-term boost, and the
resumption of regular liftings from Triton will return us to significant and
sustainable cash generation going forward.

 

This, in turn, will help us to deliver on our two-pronged growth strategy, as
we seek to diversify our production both through investment in our existing
portfolio and M&A. While the Budget announcements yesterday were a missed
opportunity to kick-start investment across the UK North Sea, we now have
greater clarity about the fiscal and regulatory regimes in which our
investment decisions will be made. We have multiple, and material, organic
growth options, and we will work to high-grade the investments that maximise
shareholder value."

 

 

Update on production and financial performance

 

 (boepd)                 Q1      Q2      Q3      Average
 Bruce Hub               17,200  16,300  15,400  16,300
 Triton Hub              5,100   -       7,700   4,300
 Other Producing Assets  5,200   5,600   4,400   5,100
 Total                   27,500  21,900  27,500  25,700

 

·    Production of 25,700 boepd in first nine months of 2025,
predominantly impacted by downtime at the Triton FPSO

·    Q3 production included the planned annual maintenance periods at the
Bruce Hub and across Other Producing Assets

-     Following October production of 27,900 boepd, production in November
rebounded to average 50,300 boepd prior to the planned outage at Triton, which
started on 23 November and is expected to complete in mid-December

·    Revenue of $439 million in first nine months of 2025, with $134
million in Q3 (Q3 2024: $139 million)

-     Average realised Brent oil price of $70/bbl in first nine months of
2025 (first nine months of 2024: $76/bbl)

-     Average realised NBP gas price of 89p/therm in first nine months of
2025 (first nine months of 2024: 71p/therm)

·    Capital expenditure of $200 million in first nine months of 2025
(same period in 2024: $202 million), in line with guidance, the majority of
which was spent on completion of the Triton drilling programme and ongoing
subsea work to prepare Belinda for production

·    Cash tax paid of $8.5 million in 2025, benefitting from group relief,
which also resulted in a $71 million tax refund being received in June 2025.
There are no further tax payments to be made in 2025

·    Cash of $41 million as at 30 September 2025 (30 June 2025: $174
million)

-     Q3 capital expenditure was $62 million, no payments for liftings
were received relating to Triton production, and the final dividend of $51
million was paid in July

-     Borrowings of $231 million as at 30 September 2025 (30 June 2025:
$231 million), resulting in a net debt position of $190 million as of 30
September 2025

-     Total liquidity of $300 million as of 30 September 2025, comprising
cash and undrawn committed RBL facility availability of $259 million

 

Operational update

·    Maintenance work at the Triton FPSO completed in July, with
subsequent temporary issues relating to the compression train and flare
system, resulting in significantly reduced production in Q3

-     Production rebounded strongly in November, averaging 25,300 boepd
net to Serica prior to the planned subsea work starting on 23 November. This
work on the Bittern export pipeline requires production to be shut in from the
Bittern, Gannet, and Evelyn fields, and is set to complete in mid-December

-     The Triton FPSO is currently running with one compressor online,
with maximum production net to Serica of 25,000-30,000 boepd. The start of two
compressor operations would facilitate an increase in production through the
optimisation of Serica wells, and then production from the Belinda field
(Serica 100%). Testing of the second compressor is currently underway, and the
operator of the Triton FPSO, Dana, continues to review the start date of
two-compressor operations

·    Production from the Bruce Hub averaged 22,000 boepd in the period
prior to planned annual maintenance, which began on 15 August. Following the
completion of maintenance, bull-heading operations (in which gas is pumped
into a well to reduce back pressure and enhance production) were only able to
resume in November, resulting in curtailed production of 16,100 boepd in
October. With the resumption of bull-heading, production has returned to over
20,000 boepd from the Bruce Hub

 

Update on acquisitions

·    The acquisition of Prax Upstream is set to complete in mid-December,
at which point production from Lancaster, currently around 5,900 boepd, will
be added to the Company total. Completion of the TotalEnergies and ONE-Dyas
Acquisitions continues to be expected in H1 2026

·    In November, Serica announced the acquisition of a 40% holding in the
P2530 Licence from Finder Energy, containing the Wagtail oil discovery and the
low-risk Marsh and Bancroft exploration prospects. The addition of the stake
in Wagtail will add an operator estimated c.8 MMbbls of net 2C Contingent
Resources to the Serica portfolio, and enhanced the already attractive organic
growth opportunity set

 

Update on UK Government consultations

·    As announced in the Budget yesterday, the Energy Profits Levy ('EPL')
will be retained in its current form until 2030

·    After EPL ends, or ceases due to average oil and gas prices falling
below triggers set under the Energy Security Investment Mechanism ('ESIM'),
currently Brent $76.12/barrel and 0.59p/therm, the government yesterday
confirmed that it will be replaced by a new permanent mechanism, the Oil and
Gas Price Mechanism ('OGPM'). Unlike EPL, the OGPM will be applied separately
to oil and to gas and will tax only the proportion of revenue earned above new
OGPM trigger levels, those being $90/barrel and 90p/therm (for 2026 to 2027,
then rising with the Consumer Price Index), at a tax rate of 35% (as opposed
to 38% for the EPL)

·    Also announced yesterday was the North Sea Future Plan. This
reconfirmed the government's commitment that all existing licences will be
honoured, and licence extensions can be granted. It is not therefore expected
that, once legislated, the new regime will impact Serica's current portfolio,
future developments, or growth strategy

·    The North Sea Future Plan also introduces a new concept of
Transitional Energy Certificates which are designed to support further
development in currently unlicensed areas adjacent to existing licensed blocks

 

Outlook and guidance

·    Serica expects production for FY 2025 to average 27,000 to 28,000
boepd

·    Capital expenditure expected to be around $250 million, in line with
guidance

·    Opex is expected to be around 10% above the previously guided $330
million, due in part to the relative strength of Sterling against the US
Dollar

·    Serica continues to analyse multiple M&A opportunities, focused
on the UK North Sea, while progressing the numerous organic growth options in
the existing portfolio

·    Serica remains committed to the move from the AIM to the Main Market
of the London Stock Exchange, which continues to be expected following
publication of Serica's audited FY 2025 accounts and consolidated year end CPR
information

·    In line with previous years, guidance for 2026 will be provided in a
Trading and Operations Update to be announced on 21 January 2026

 

 

The technical information contained in the announcement has been reviewed and
approved by Carla Riddell, Chief Technical Officer at Serica Energy plc. Ms.
Riddell (B.Sc. Geology from University of Durham University, M.Sc. Palynology
from University of Sheffield) has over 25 years of experience in oil & gas
exploration, development and production and is a Fellow of the Geological
Society of London and Energy Institute.

 

This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.

 

-end-

 

Enquiries:

 

 Serica Energy plc                                                         +44 (0)20 7487 7300
 Martin Copeland (CFO) / Andrew Benbow (Group Investor Relations Manager)

 Peel Hunt (Nomad & Joint Broker)                                          +44 (0)20 7418 8900
 Richard Crichton / David McKeown / Emily Bhasin

 Jefferies (Joint Broker)                                                  +44 (0)20 7029 8000
 Sam Barnett / Cameron Jones

 Vigo Consulting (PR Advisor)                                              +44 (0)20 7390 0230
 Patrick d'Ancona                                                          serica@vigoconsulting.com

 

 

NOTES TO EDITORS

Serica Energy is an independent British oil and gas company with a broad
portfolio of assets located in the UK Continental Shelf (UKCS). The Company is
responsible for about 5% of the UK's natural gas, which plays a significant
role in supporting the country's energy transition, and has invested over £1
billion in the UK supply chain since 2020. Serica maintains a balanced output
of oil and gas across its operations.

 

The Company's key producing assets are grouped around two major hubs: the
Bruce, Keith, and Rhum fields in the Northern North Sea, where Serica is the
operator; and a mix of operated and non-operated fields connected to the
Triton FPSO in the Central North Sea.

 

Serica aims to create shareholder value through a mix of production from
existing oil and gas fields, organic investment and M&A.

 

Serica expects to complete the purchase of Prax Upstream Limited during 2025,
gaining 100% ownership and operatorship of the Lancaster field situated in the
West of Shetlands area. In H1 2026, Serica is also set to complete the
acquisition of a 40% operated stake in the Greater Laggan Area offshore fields
and associated Shetland Gas Plant from TotalEnergies and non-operated
interests in the Catcher and Golden Eagle Area Development fields from
ONE-Dyas.

 

Serica's shares trade on the AIM market of the London Stock Exchange (ticker:
SQZ). More information about Serica is available on the Company's website
(www.serica-energy.com (http://www.serica-energy.com) ). To receive news
updates by email, interested parties can subscribe through the website.

 

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