Serica Energy Announces on Bond Issuance Plans and Production Boost, Shares Rise

Serica Energy plc (AIM: SQZ) saw its shares jump over 4% today following the announcement of planned fixed income investor meetings related to a potential senior unsecured bond issuance and a significant increase in production. The company aims to optimize its capital structure and enhance capital allocation optionality.

The potential 5-year senior unsecured bond issuance is contingent on market conditions and suitable terms. Serica intends to use the net proceeds to fully repay its outstanding Reserve Based Lending (RBL) debt, maintaining the RBL for future investment opportunities, including M&A. This strategic move is not expected to impact Serica’s net indebtedness position.

As of April 23, 2026, Serica reported cash reserves of $153 million and a net debt position of $78 million. This marks a substantial improvement from the $200 million net debt reported on December 31, 2025, primarily driven by the $56 million received from TotalEnergies upon completion of the acquisition of a 40% stake in the Greater Laggan Area (GLA) on March 26.

WELCOME BONUS - Free Share Bundle When You Invest £50! Open a UK Investment Account: Shares, ISAs, Managed Portfolio Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply. IG

5.0

View Offers

Empfohlener Broker Multi Asset Platform

Social-Trading-Pionier mit Aktien, ETFs, Krypto und CFDs, Copy Trading inklusive. eToro

5.0

Weitere Informationen 50% of retail investor accounts lose money when trading CFDs with this provider.

Production figures have also contributed to the positive market sentiment. Q1 2026 saw an average production of 39,100 boepd (barrels of oil equivalent per day), which has since increased to an average of 49,100 boepd in Q2 to date. This increase reflects improved performance at the Triton field and the addition of production from the GLA. The company maintains its 2026 production guidance of significantly over 40,000 boepd.

Serica plans to host a Capital Markets Day on June 2, 2026, to detail its planned organic growth projects. These projects will focus on short-cycle infill drilling and tieback options within Serica’s expanded portfolio, promising attractive returns and rapid payback. The company will also outline its capital allocation framework, emphasizing shareholder value maximization through sustained and growing production, attractive shareholder returns, and a strong balance sheet.

Serica has appointed DNB Carnegie, part of DNB Bank ASA, and Pareto Securities as Joint Bookrunners, and SB1 Markets AS as Co-Lead Manager to arrange fixed income investor meetings commencing on Monday, April 27.

Quick Stat: Net debt reduced by $122 million since December 31, 2025, showcasing Serica’s improved financial health.

CEO Chris Cox stated, “Following the scale-up of Serica’s portfolio we are now seeking to proactively optimise our capital structure through diversifying our sources of funding and enhancing our capital allocation optionality, thereby setting the Company up to take full advantage of the multitude of investment opportunities ahead to create shareholder value,” reinforcing the company’s commitment to shareholder value.