Jan 21, 2026 (MarketLine via COMTEX) --
The UK North Sea operator anticipates a substantial uplift in average annual production beyond 40,000boepd in 2026.
Serica Energy is anticipating a significant increase in production for 2026, driven by improved operational performance and the completion of acquisitions that could more than double its producing fields.
As per its latest trading and operations update, the UK North Sea operator has started the year with production levels notably higher than in 2025. To date, the company’s production in 2026 has been 43,000 barrels of oil equivalent per day (boepd), with current rates of roughly 50,000boepd.
For the year 2025, the company’s production averaged 27,600boepd, down from 34,600boepd in 2024.
Serica Energy anticipates a substantial uplift in average annual production beyond 40,000boepd in 2026, contingent on the timely completion of acquisitions announced in the latter half of 2025.
If these acquisitions proceed as scheduled, the AIM-listed upstream oil and gas company forecasts that output could exceed 65,000boepd. Operational expenditure for the year is projected at $380m (£283.09m)–400m.
Recent operational improvements are said to be central to Serica Energy’s strategy.
The Bruce Hub has been restored to around 20,000boepd net to the company after repairs aimed at enhancing reliability and extending asset life.
At the Triton Hub, infrastructure upgrades including pipeline enhancements and commissioning of a second compressor are expected to stabilise and potentially increase production.
However, the Lancaster field, located west of Shetland, is expected to cease production in the second quarter of 2026 as the floating production, storage and offloading unit departs. Currently, this offshore oilfield produces approximately 6,000boepd.
In 2025, Serica Energy faced a negative free cash flow of $22m and reduced cash reserves of $31m due to significant capital expenditures.
Nonetheless, the company expects a material improvement in free cash flow for 2026 at current commodity prices.
Serica Energy CEO Chris Cox said: “Serica enters 2026 as a stronger, more resilient company, with increasingly diversified production and revenues that are set to rise materially from 2025 levels. Our recently announced acquisitions, as they complete throughout the year, will more than double the number of producing fields in our portfolio and materially add to cash generation, supporting our strategy of delivering value to investors through both growth and shareholder returns.
“The expansion of our portfolio is delivering a greater number of attractive organic growth options, allowing us to cherry-pick those that offer the greatest return on investment, growing and sustaining material cash-generative production for Serica into the next decade.”
Last December, Serica Energy entered into a sale and purchase agreement to acquire a portfolio of southern North Sea assets from Spirit Energy and its affiliates. This deal follows the completion of Serica Energy’s transaction with Prax Upstream.
The upfront consideration for the assets is set at £57m, with the economic benefits retroactively effective from 1 January 2025. The deal is set to be finalised in the second half of 2026.
Currently, Serica Energy has ten producing fields. Its net proved plus probable (2P) reserves as of 31 December 2024 were 117.5 million barrels of oil equivalent.
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