UK-based upstream oil and gas player Serica Energy is setting the stage to ink a rig deal for its planned multi-well drilling program in the UK sector of the North Sea to achieve high-impact organic production growth.
Serica has a portfolio of short-cycle projects with the potential to add 30,000 barrels of oil equivalent per day (boepd) of incremental production, supporting annual average production of over 50,000 boepd into the next decade.
The firm intends to lease a rig ahead of its planned drilling program, with a rig contract expected to be signed in the coming weeks. The drilling campaign is estimated to take around 400 days, with an option to extend.
As a result, the firm emphasizes that there is the potential to drill up to six wells across its expanded portfolio, with the drilling anticipated to begin with the Bruce SCE and SCW wells in Q3 2027. The first production is expected 12 months from the start of drilling.
Chris Cox, Serica’s CEO, commented: “We have taken advantage of attractive market conditions and successfully completed both the issue of a new five-year Nordic Bond and refinanced our RBL facilities with a new six-year maturity $750 million facility. This gives Serica substantial liquidity and flexibility as we enter the next phase of organic investment and portfolio growth.
“We expect to shortly confirm contracting of a rig to deliver our high-impact and rapid return organic growth projects in the UK North Sea, and continue to seek further opportunities to deliver shareholder value via M&A both in the UK and internationally.”
Serica’s acquisition of the 40% interest in the Greater Laggan Area from TotalEnergies was completed in March 2026, adding a new operated production and development hub in the high-potential West of Shetland basin. The company claims to be evaluating a pipeline of M&A opportunities, both in the UK North Sea and other areas.
The firm recently announced the acquisition of Pharos Energy, completion of which would provide a first step in its long-standing strategic objective of international expansion, boosting its reserves and resources and adding cash-generative production.
Cox added: “A long-standing objective is to establish a significant international business to complement our position on the UKCS.
“The recommended acquisition of Pharos Energy represents the first step in delivering that strategy, and the deal, should it complete, is set to deliver value-accretive, materially cash-generative diversification and act as an ideal platform for further international growth.”
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