Britain's Serica Energy said on Tuesday it will buy Prax Upstream, the sole operator of Lancaster oilfield located in the UK's North Sea, for $25.6 million.
The deal also includes the acquisition of 40 per cent operated interest in the Greater Laggan Area, a 10 per cent interest in Catcher Field and a 5.21 per cent interest in the Golden Eagle Area, all based in the North Sea.
The North Sea-focused oil and gas producer will buy Prax Upstream from its parent Prax Exploration Production, which entered administration earlier this year diversifying its operations and increasing its cash flow.
Serica expects an additional $50 million of free cash flow from the combined assets in 2026, the company added.
The London-headquartered firm in early September cut its 2025 production outlook after a hit from a temporary slowdown in output at the Triton floating production storage and offloading vessel.
(Reporting by Prerna Bedi in Bengaluru; Editing by Shailesh Kuber)