Trading and Operations Update

(AIM:SQZ) Serica Energy plc issued a trading and operations update for the third quarter and first nine months of 2026. Current Serica production is around 40,000 boepd, prior to the resumption from the Triton FPSO following its annual maintenance. The company remains on track to hit production rates of 65,000 boepd from its enlarged portfolio by the end of the year. Production for the first nine months of 2026 was 37,100 boepd, a 44% increase from 25,700 boepd in the prior year period. Q3 production was 22,100 boepd, reflecting planned annual maintenance at the Bruce and Triton Hubs. Annual maintenance at the Triton FPSO began on 27 July, with the operator revising its forecast for resuming production to around the end of November due to an engine change out. Revenue for the first nine months of 2026 was $905 million, more than double the $439 million in the same period of 2025, with $228 million in Q3 (Q3 2025: $134 million). Capital expenditure was $113 million in the first nine months of 2026 (2025: $200 million), in line with guidance. Cash was $227 million as at 30 September 2026 (30 June 2026: $326 million). Q3 outgoings included a final dividend payment for FY2025 of $52 million, a cash tax payment of $27 million in July, and a $43 million payment to Spirit Energy on completion of that transaction. Borrowings were $300 million as at 30 September 2026, resulting in a net debt position of $73 million. Total liquidity was $685 million as of 30 September 2026, comprising cash and undrawn committed RBL availability of $458 million. Prior to the resumption of production from the Triton FPSO, production net to Serica is currently over 40,000 boepd, including around 12,000 boepd from the Southern North Sea gas portfolio acquired from Spirit Energy. The Bruce Hub resumed production after scheduled maintenance on 12 September, with current rates around 20,000 boepd net to Serica. Serica is finalising a contract for a rig to execute a multi-well drilling campaign targeting high-return, near-field opportunities, commencing in 2027 and into 2028. The operated drilling campaign could add up to 30,000 boepd of incremental production, helping to sustain portfolio production of 50,000 boepd into the next decade. The drilling sequence for Bruce (98% WI and operator) includes the WAD5, SCE Development, and SCW Development wells, set to be drilled during the campaign, with drilling to begin in Q3 2027 and first production expected within 12 months. An ES and FDP have been submitted for the Kyla (100% WI and operator) development, with Edradour Royal Sovereign and Spinnaker (40% WI and operator) ES and FDP to follow. In the non-operated portfolio, Serica has given partner consent for two further wells at Cygnus (15% WI), and additional infill wells at Clipper South (25% WI) and Catcher (10% WI). Plans to drill Skerryvore on the P2400 licence (70% WI and operator) are progressing, targeting gross unrisked prospective resources of 135 mmboe. Negotiations for processing the Tornado gas field within the Shetland Gas Plant are ongoing. Following the extension of annual maintenance at Triton, Serica now expects production for 2026 to average just below 40,000 boepd. Post-tax CFFO guidance is maintained at $450-475 million. Opex guidance is $380-400 million, excluding $65 million of Lancaster spend. Capital expenditure guidance is $175 to $195 million. Serica continues to screen multiple M&A opportunities in the UK North Sea and overseas. A prospectus for the company's move from AIM to the Main Market is set to be released later this week, with scheduled admission four trading days thereafter, making Serica eligible for entrance into the FTSE 250 in the December indices review. Guidance for 2027 will be provided in a Trading and Operations Update on 20 January 2027. The technical information in the announcement was reviewed and approved by Carla Riddell, Chief Technical Officer at Serica Energy plc.

Serica Energy — Termination of Serica Offer for Pharos Energy plc

(LON:SQZ) Serica Energy plc has terminated its final offer for the acquisition of the entire issued and to be issued share capital of Pharos Energy plc. On 10 August 2026, Serica confirmed that its offer value was 32.6683 pence per Pharos share, comprising 28.6683 pence in cash and 4.0 pence in cash by way of a special dividend, and that this offer was final and would not be increased. The Panel on Takeovers and Mergers has confirmed that Serica is released from its obligation to proceed with the Final Serica Offer and is subject to restrictions set out in Rule 35.1 of the Code, prohibiting Serica from making any offer for Pharos without the consent of the Panel for a period of 12 months.

Statement regarding Final Offer

(LON:SQZ) Serica Energy plc announced an update regarding its recommended cash offer for the entire issued and to be issued share capital of Pharos Energy plc, with a total value offered of 32.6683 pence per Pharos Share, comprised of 28.6683 pence in cash and 4.0 pence in cash by way of a special dividend. The board of directors of Serica notes the increased offer announced by Ratio Petroleum Energy LP on 7 August 2026, which includes irrevocable undertakings in respect of Pharos Shares representing approximately 41.76 per cent. of Pharos' issued share capital. Serica confirms that the financial terms of the Serica Offer as set out in the Serica 2.7 Announcement are final and will not be increased. The company continues to rigorously evaluate a pipeline of opportunities, both in the UK North Sea and other areas. Serica reserves the right to increase the value of the Serica Offer only if there is an announcement of an offer or possible offer for Pharos by any third party offeror other than Ratio, or if the Takeover Panel provides its consent in wholly exceptional circumstances. The individual responsible for releasing this Announcement is Chris Cox, Chief Executive Officer of Serica. A copy of this Announcement will be made available, free of charge, on Serica's website by no later than 12 noon (London time) on the Business Day following the date of this Announcement.

New Reserves Based Lending Facilities Completion

(AIM: SQZ) Serica Energy Plc announced the signing and completion of new six-year, senior secured Reserves Based Lending ('RBL') facilities totalling $750 million, comprising a $500 million secured revolving loan facility and a $250 million secured revolving letter of credit facility. The new facilities replace the Company's current $525 million RBL facility, with extended maturity and improved pricing terms. As of 30 June 2026, Serica held cash of $326 million and had a net cash position of $26 million, compared to $31 million cash and net debt of $200 million at 31 December 2025. The company has a liquidity position pro forma for the agreed borrowing base under the new RBL of $784 million as of 30 June 2026. Serica also completed a $300 million placement of five-year senior unsecured Nordic bonds, with proceeds used to repay outstanding debt. The company operates assets that deliver around 10% of the UK's gas production and has invested over £1 billion in the UK supply chain since 2020. Serica intends to complete the acquisition of a package of operated and non-operated assets from Spirit Energy at the end of Q3 2026, including a 15% stake in the Cygnus field and 25% in Clipper South.

Completion of acquisition of assets from ONE-Dyas

(AIM: SQZ) Serica Energy Plc has completed the acquisition from ONE-Dyas of a 10% interest in the Catcher Field and a 5.21% interest in the Golden Eagle Area Development, settling the consideration of $6.75 million. The acquisition adds current net production of around 2,500 boepd to Serica's portfolio and increases combined net 2P reserves by 3.0 mmboe and 2C resources by 0.5 mmboe as at 31 December 2025. Serica has received a payment of $13.0 million reflecting interim post-tax cashflows between the Economic Date of 1 January 2024 and the date of completion. The company will also receive around 85,000 barrels of oil equivalent in respect of an underlift position, with associated cash proceeds of c.$8 million to be received in Q3. Serica operates assets that deliver around 10% of the UK's gas production and has invested over £1 billion in the UK supply chain since 2020. The company intends to complete the acquisition of a package of operated and non-operated assets from Spirit Energy in Q3 2026, including a 15% stake in the Cygnus field and 25% in Clipper South as well as the operated Greater Markham Area. Serica has announced its intention to move its listing to the Main Market of the LSE in 2026.

Pricing of Nordic bond issue

Serica Energy plc (AIM: SQZ) has successfully completed a placement of $300 million of new five-year senior unsecured bonds with a coupon rate of 7.875% per annum. The bond issue was significantly oversubscribed by a wide range of high-quality investors across the Nordics, UK, and other geographies. Net proceeds will be used to repay the outstanding Reserve Based Lending (RBL) drawn debt and enhance the company's liquidity, which is now around $675 million pro forma for the bond. The company also announced intentions to move its listing to the Main Market of the LSE in 2026 and plans further acquisitions in the second half of 2026. This matters to investors as it strengthens Serica's balance sheet, diversifies financing sources, and positions the company for future growth opportunities.

Investor meetings and update on current trading

Serica Energy plc (AIM: SQZ) announced plans to arrange fixed income investor meetings for a potential issuance of a new 5-year senior unsecured bond, aiming to optimise its capital structure and diversify funding sources. As of 23 April 2026, Serica had cash of $153 million and a net debt position of $78 million, down from $200 million at 31 December 2025, aided by a $56 million receipt from TotalEnergies for the acquisition of a 40% stake in the Greater Laggan Area. Production increased from 39,100 boepd in Q1 2026 to an average of 49,100 boepd in Q2 to date, with 2026 guidance remaining unchanged at significantly over 40,000 boepd expected. The company will host a Capital Markets Day on 2 June 2026 to provide details on planned organic growth projects and its capital allocation framework. Serica also intends to complete further acquisitions in the second half of 2026 and Q3 2026.