Flash blog: Serica, Zephyr, Reabold, Savannah, Jadestone.

This is a repeat of the blog from Tuesday 30th September, most people received it but I understand due to a technical hitch some were left out by the automated delivery service.

More today, 1st October.

A flash blog today, its always the same on the last day of the quarter as a raft of companies hit the deadline for producing results. The good thing is that in most cases the results are historic and need little comment which has usually already been made. Companies I don’t get to today I will cover tomorrow.

Serica Energy

Serica has announced it has signed a sale and purchase agreement to acquire 100% of the issued share capital of Prax Upstream Limited (‘Prax Upstream’) from Prax Exploration & Production Plc (in Administration) (the ‘Acquisition’). Prax Upstream holds a 100% interest in, and is the operator of, the Lancaster field. In addition, Prax Upstream is party to separate executed sale and purchase agreements with TotalEnergies and ONE-Dyas for the purchase of certain assets (‘Existing SPAs’). Consequently, the Acquisition, including completion of the Existing SPAs, comprises a 40% operated interest in the Greater Laggan Area (‘GLA’), a 10% interest in the Catcher Field, a 5.21% interest in the Golden Eagle Area Development (‘GEAD’) and a 100% interest in the Lancaster field. The total aggregate upfront consideration is $25.6 million.

Chris Cox, Serica’s CEO, stated:

“This transaction represents a further step in the delivery of our growth strategy – it diversifies our portfolio, increases our reserves and resources, and enhances near-term cashflows at an attractive valuation. The addition of GLA brings Serica a new production hub, with operatorship of the Shetland Gas Plant. There is an immediate boost to production and reserves, plus the scope to create significant value for shareholders through multiple subsurface, commercial, and further M&A opportunities.

This transaction illustrates Serica’s ability to move quickly, utilising our strong balance sheet and skill sets to make an acquisition with strategic potential on attractive terms.“

Serica has announced that it has signed an SPA to acquire Prax from administration, it shows what incredible deals can be done for companies that have a good fit. And here Serica do have a fit and they have bought the assets for c.$2.3 pb which given the huge potential and significant tax losses is an excellent fit – “like the Parkmead deal on steroids”, I have heard it called already. The tax losses will be very valuable for Serica going forward obviously, and there is also some exciting asset potential.

It is NAV accretive from the start and will add some 8-10/- b/d next year. The GLA asset is very much a sweet spot at the moment with the Shetlands seeing majors such as Acura and BP still buying assets – I also note Shell’s Victory gas field has today been announced as having come onstream, flowing through Serica’s newly acquired Shetland Gas Plant. The GLA has ‘material potential’ and probably the most prospective basin in the UKCS right now.

The deal has plenty of cash, expect about $150m of FCF in 2026 bolstered by completion payments, with more to come in the following year. The deal more than covers any medium-term decommissioning costs and then any others to come are much later down the line, potentially past the mid 2030’s. Finally they get Catcher and Golden Eagle cash flows which might be in later life but add to that cash flow.

I’m very impressed with this deal for all of the above reasons, add the serious growth potential across the portfolio and, as confirmed on the conference call, Triton is back in business, Serica is still a very attractive play at the top of the Bucket List.

BENEFITS OF THE ACQUISITION

Completion of the Acquisition is expected in Q4 2025 and of the Existing SPAs in Q1 2026. Taken together, these transactions will enhance the Serica portfolio as follows:

·    Addition of 11.0 mmboe of 2P reserves^[1] (as at 30 June 2025), at an acquisition cost of $2.3/boe[2]

·   A more diverse and robust production portfolio, with H1 2025 production of 7,900 boepd associated with the Existing SPAs and 5,900 boepd from the Lancaster field (expected to cease production in H2 2026)

·    A new operated hub for Serica in the West of Shetland basin with multiple sources of organic growth potential, including an infill well on the Tormore field, the Glendronach development, four exploration licences, and third-party throughput opportunities in the Shetland Gas Plant (‘SGP’)

FINANCIAL HIGHLIGHTS

·    Upon completion, Serica will pay an aggregate upfront consideration of $25.6 million and will receive payments totalling an estimated c.$100 million reflecting interim post-tax cashflows between the economic dates of each transaction and estimated completion dates

·    In addition to the completion payments, Serica expects an incremental c.$50 million of Free Cash Flow[3] from the acquired assets in 2026

·    Following completion of the transactions, Serica estimates that its portfolio decommissioning liability per 2P barrel will remain amongst the lowest in the UK North Sea. Near-term decommissioning costs relate largely to the plugging and abandonment of two wells at Lancaster, forecast to cost c.$60 million

–    Catcher and GEAD decommisioning is set to occur towards the end of the decade, at an estimated net cost of c.$90 million

–     Decommissioning at GLA is not currently planned until well into the 2030s, with net post-tax costs potentially in the range of $200 to $250 million. As operator, Serica expects to work with partners to pursue opportunities to extend the productive life of the facilities through increasing production and securing third party throughput

·    With the addition of tax losses acquired, on completion of the Prax Upstream acquisition Serica aggregate ring-fence losses as of 30 June 2025 will total $2.14 billion Ring Fence Corporation Tax, $1.83 billion Supplementary Charge, and $518 million Energy Profits Levy

ACQUISITION SUMMARY

KEY TERMS OF THE ACQUISITION

The Acquisition is a corporate acquisition of Prax Upstream for a consideration of £14.5 million ($18.9 million). Completion is subject only to customary regulatory approvals and is expected to occur by year end.

KEY TERMS OF THE EXISTING SPAs

Upon completion, Serica will assume the rights and obligations of Prax Upstream in relation to the two Existing SPAs. 

The Existing SPAs relate to two asset acquisitions undertaken by Prax Upstream: an agreement entered into between certain Prax Upstream subsidiaries and TotalEnergies E&P UK Limited (‘TEPUK’) in respect of a 40% operated interest in the GLA (the ‘TTE Acquisition’); and an agreement between Prax Upstream and ONE-Dyas E&P Limited (‘ONE-Dyas’) in relation to a 10% interest in the Catcher Field and 5.21% interest in GEAD (the ‘ONE-Dyas Acquisition’). Further details on the assets underlying the Acquisition and the Existing SPAs are set out below. 

The TTE Acquisition was originally signed between certain Prax Upstream subsidiaries and TEPUK on 20 June 2024. On 29 September 2025, an Amended and Restated Asset Purchase Agreement and Share Purchase Agreements, both on the same terms and conditions as the original TTE Acquisition documents (save for the extension of the applicable longstop dates) have been signed between certain Prax Upstream subsidiaries and (subject to completion of the Acquisition) Serica as Guarantor. The TTE Acquisition consideration at the economic date of 1 January 2024 (the ‘TTE Economic Date’) is $1 payable on completion as adjusted by certain customary completion adjustments including inter alia net cashflows after tax from the GLA interests between the TTE Economic Date and completion. In addition, the TTE Acquisition includes contingent consideration related to the sanctioning of certain third-party fields developed as tie-backs to the SGP no later than 31 December 2033. Completion of the TTE Acquisition, which is subject to customary completion conditions including NSTA and partner consents, is expected to occur in H1 2026. On completion of the TTE Acquisition Serica is expected to receive a payment reflecting interim post-tax cashflows between the TTE Economic Date and the date of completion.

The ONE-Dyas Acquisition was originally signed between certain Prax Upstream subsidiaries and ONE-Dyas on 28 March 2025. On 29 September 2025, certain amendment letter agreements have been signed between certain Prax Upstream subsidiaries and (subject to completion of the Acquisition) Serica as Guarantor. The ONE-Dyas Acquisition consideration at the Economic Date of 1 January 2024 (the ‘ONE-Dyas Economic Date’) is $6.75 million payable on completion as adjusted by certain customary completion adjustments including inter alia net cashflows after tax from the Catcher and GEAD interests between the ONE-Dyas Economic Date and completion. Completion of the ONE-Dyas Acquisition, which is subject to customary completion conditions including NSTA and partner consents, is expected to occur in H1 2026. On completion of the ONE-Dyas Acquisition Serica is expected to receive a payment reflecting interim post-tax cashflows between the ONE-Dyas Economic Date and the date of completion.

ASSETS ACQUIRED

Greater Laggan Area (40% and operator): Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, the onshore SGP (collectively the ‘GLA Assets’) and four infrastructure led exploration licences

The assets acquired under the TTE Acquisition comprise TotalEnergies’ entire 40% operated interest in the GLA Assets, as well as associated infrastructure usage rights and operated licence interests in four near field exploration blocks in the SGP catchment area. The GLA Assets had net 2P reserves of 4.6 mmboe and 2C resources of 5.4 mmboe as at 30 June 2025.

The GLA Assets, located north-west of Shetland, comprise eight wells from four fields connected as subsea tiebacks to, and operated from, the SGP. Production totalled 5,000 boepd net to TotalEnergies in H1 2025, 90% of which was gas. Production from these fields is in decline, with the potential to offset this through organic projects, including an infill well on Tormore and development of the Glendronach discovery. There are also estimated unrisked net mean prospective resources of over 400 mmboe in the exploration blocks.

GLA gas is evacuated from the SGP through the Shetland Islands Regional Gas Export System (‘SIRGE’) pipeline into the Frigg UK Association (‘FUKA’) pipeline to the St Fergus terminal.

The SGP was commissioned in 2016 and is the newest onshore gas processing facility in the UK. Natural gas represents nearly 40% of the UK’s total energy supply with a growing gap between UK demand and domestic production. The SGP and associated infrastructure serves as the key gathering system for gas coming from the highly prospective West of Shetland basin. Serica expects that this will facilitate the exploitation of infrastructure-led development and exploration opportunities in the area including new sources of third-party throughput that offer the potential to extend the productive life of the SGP. The impending start-up of production, anticipated in Q4 2025, from the Shell-operated Victory field is a prime example of such an opportunity.   

Preparation for the transfer of operatorship of the GLA Assets from TEPUK to Prax Upstream was well advanced prior to Serica’s involvement and will now be expedited.

Catcher (10%) and Golden Eagle Area Development (‘GEAD’) (5.2%)

The ONE-Dyas Acquisition comprises ONE-Dyas’ non-operated working interests in the Catcher and GEAD fields in the Central North Sea, operated by Harbour Energy and CNOOC respectively. In H1 2025 the assets delivered combined net production of 2,900 boepd with high-uptime. The ONE-Dyas Acquisition brings net 2P reserves of 3.8 mmboe and 2C resources of 0.5 mmboe, as at 30 June 2025.

Lancaster (100%)

Prax Upstream owns a 100% interest in the Lancaster oil field, West of Shetland. Lancaster produced an average of 5,900 bopd of oil in H1 2025 via the Bluewater owned and operated Aoka Mizu FPSO. This FPSO has been earmarked for a potential new contract for the Sea Lion project in the Falkland Islands and Lancaster production is not expected beyond Q3 2026. The Lancaster field had 2P reserves of 2.6 mmboe as at 30 June 2025.

Zephyr Energy

Zephyr has reported its unaudited interim results for the six months ended 30 June 2025 (“H1 2025”). 

Colin Harrington, Chief Executive of Zephyr, said:

“During H1 2025, and in the period since, we have continued to invest significant resources into the development of our flagship operated project in the Paradox Basin, Utah, U.S. (the “Paradox project”) primarily through drilling operations on the State 36-2 LNW-CC-R well (the “State 36-2R well”) which were successfully delivered and without any health, safety or environmental issues. The production test demonstrated the considerable scale and potential of the Paradox project and reaffirmed that the Cane Creek reservoir can be developed in a highly productive manner, on par with some of the leading oil and gas plays in the U.S.

“Since the completion of drilling operations, as we move closer towards first commercial production from the Paradox project, our focus has shifted to advancing the design, engineering and contractual agreements required to enable access to gas export markets through the nearby third-party pipeline. In parallel, we are advancing structured discussions with potential industry and financial partners to accelerate further drilling activity at the Paradox project. We expect substantial progress in these two key areas in the coming months, allowing the Company to unlock the considerable potential value of the Paradox project.

“Our investment in the Paradox project is supported by our strategy of generating cashflow from our non-operated portfolio in the Williston Basin, North Dakota and Montana, U.S. (the “Williston project”), which is intended to fully fund all general and administrative (“G&A”) costs, and which allows for continued investment in our asset portfolio.

“We also remain focused on opportunistically growing our non-operated portfolio, and I was delighted that we recently completed the acquisition of working interests in accretive, mature proved developed producing (“PDP”) assets in core Rocky Mountain basins, U.S. (the “Acquisition”). In addition to the PDP assets, the Acquisition included attractive near-term proven undeveloped (“PUD”) upside and additional acreage with longer-term potential for future development, providing us with the opportunity to execute the first transactions through Zephyr Hawk LLC, our US$100 million strategic partnership with a U.S based capital provider.

“Our progress would not be possible without the support of our stakeholders. I would like to thank our shareholders for their continued trust in the Company and their support in the equity raise that was announced in June 2025. I would also like to extend my sincere thanks to our debt provider, First International Bank and Trust (“FIBT”), with which we continue to have an excellent working relationship, and which has just completed its valuation of the Company’s non-operated portfolio reaffirming our current borrowing base.

“We look forward to the coming months with confidence as we continue to open-up the next prolific oil and gas basin in the U.S., and we look forward to providing regular updates as we advance through the next phase of our development including the imminent publication of an updated third-party Competent Persons Report (“CPR”) on the Paradox project.”

So historic results and no change to public knowledge as Zephyr power on with the delivery of the flagship Paradox Basin and work going on to make commercial production. At the same time the company continue to ‘advance structured discussions with potential industry and financial partners in order to accelerate drilling. 

 Along with the growing of the non-operated portfolio the company are completing a large number of work details which includes the long awaited CPR on the Paradox project. The shares have been miserable performers but I remain convinced that before long the market will ‘get it’ with Zephyr. 

Reabold Resources

Reabold has announced its unaudited interim results for the six months ended 30 June 2025. The results are included below and are also available at www.reabold.com.

Highlights

LNEnergy – Colle Santo gas field, Italy

·    LNEnergy Limited (“LNEnergy”) acquired the entire outstanding issued share capital of LNEnergy S.r.l. LNEnergy S.r.l is the Italian company that has a 90% interest in the Colle Santo gas field in the Abruzzo region of Italy, a highly material gas resource with an estimated 65Bcf of 2P reserves¹.

·    Post period end, LNEnergy’s Small Scale-LNG development plan in Colle Santo, Italy, was granted a positive opinion by the Independent Environmental Impact Assessment (“EIA”) Commission of the Italian Ministry for the Environment and Energy Security – a significant milestone towards the final EIA Ministerial Decree and the award of the Natural Gas Production Concession.

·    In July 2025, Reabold increased its interest in LNEnergy to 46.2%.

Rathlin Energy (UK) Limited (“Rathlin”) and West Newton – PEDL 183

·    Reabold increased its interest in West Newton via the acquisition of 20.4% of the shares in Rathlin from Connaught Oil & Gas Limited for a total cash consideration of £700,000. Reabold’s total shareholding in Rathlin now stands at 79.8%, and its economic interest in West Newton stands at 69.9%.

·    Post period end, Reabold announced the potential use of gas produced from the existing wells at West Newton to generate on-site electricity and power crypto mining activities, and that it had entered into a non-binding LOI with 360 Energy, Inc. to scope and design a potential bitcoin mining solution at West Newton, subject to regulatory and third-party approvals.

·    Paul Harris, former CEO of NEO Energy, was appointed to the Board of Rathlin.

¹ RPS estimate, September 2022

Sachin Oza and Stephen Williams, Co-CEOs of Reabold, commented:

“We are pleased to report on a period of strong progress for Reabold as we delivered a number of exciting developments across the portfolio.

Having further increased our economic interest in the West Newton licence to 69.9%, we welcomed the strategic appointment of Paul Harris, an international oil and gas leader with a proven track record in progressing UK hydrocarbon projects, to the Board of Rathlin and we believe he will be invaluable in advancing development. Post period end, we have been exploring options to monetise gas from West Newton through on-site electricity generation to power crypto mining, which offers an additional element of early value creation from the West Newton field.

In Italy, the positive opinion from the EIA Commission for the Colle Santo Small Scale-LNG development marks a major milestone for the nationally significant project and we remain confident that we can unlock this highly material gas resource as we work toward the final Production Concession.

We look forward to continuing this strong momentum into the second half of the year, with the Company well positioned to deliver on its strategy and create long-term value for shareholders.”

Another set of figures and it has been noticeable how much progress that Reabold has made in the last few months. I think that a number of things are going well at West Newton and indeed the exciting thought of on-site electricity generation to power crypto mining has popped up here as will in my view seriously add to the offering.

In Italy, getting the EIA Commission onside does indeed ‘mark a major milestone’ and the final production concession must give some significant confidence going forward in Italy. There is massive upside in Italy and West Newton and the shares, up some 18% over the last six months still have a great deal of upside.

Savannah Energy

The Company expects to announce its Half Year Results to 30 June 2025 and publish its 2024 Annual Report and Accounts on Friday 10 October 2025. As a result of the delayed publications, and pursuant to the requirements of AIM Rules 18 and 19, trading in the Company’s shares will remain suspended until both sets of accounts are published. 

Jadestone Energy

Jadestone has reported its unaudited condensed consolidated interim financial statements, as at and for the six-month period ended 30 June 2025 

H1 2025 Operational Highlights

l    A total of over 11.7 million manhours worked across the Group without a lost-time injury.

l   Record production of 20,368 boe/d (H1 2024: 16,867 boe/d) from a diversified production base, representing 21% growth year-on-year, underpinned by a strong performance from Akatara.

l  T. Mitch Little appointed as Chief Executive Officer in June 2025, bringing significant operational and management experience from over three decades in the upstream industry with Marathon Oil Company.

l   Sale of Thailand assets for a total consideration of US$39.4 million, with a further US$3.5 million in cash payable contingent on future license extensions, representing active portfolio management and disciplined capital allocation.

l   In March 2025 the Group submitted a Field Development Plan (“FDP”) for the Nam Du/U Minh discoveries offshore Vietnam.

l   The Skua-11ST development well at Montara was drilled safely, with initial production rates significantly ahead of expectations when brought onstream post period end.  

H1 2025 Financial Highlights

l    Profit after tax of US$32.8 million (H1 2024 loss after tax of US$31.1 million).

l    Revenues (post-hedging) of US$228.3 million (H1 2024: US$185.1 million), up 23% year-on-year.

l   Adjusted unit operating costs of US$24.70/boe (H1 2024: US$31.72/boe), down 22% year-on-year, driven by a focus on cost control across the Group.

l    Adjusted EBITDAX of US$100.6 million (H1 2024: US$60.2 million), up 67% year-on-year.

l    Operating cashflow pre working capital of US$92.8 million (H1 2024: US$27.9 million), up 232% year-on-year.

l    Closed a new US$30 million working capital facility with a 31 December 2026 maturity.

l    During the period, the Group hedged an additional 1.8 million barrels of oil production over the 12 months ending 30 September 2026 at an average Brent price of US$69.92/bbl (excluding premiums).

l   Net debt at 30 June 2025 of US$107.7 million, reflecting cash balances[1] of US$59.0 million and drawn debt of US$166.7 million. The Group received cash proceeds of US$62.5 million in July 2025 from June 2025 Montara and Stag liftings.

Current Trading and Outlook

l Continued strong production performance:

¡    Year-to-date[2], Group production has averaged approximately 20,300 boe/d, with excellent performance from Akatara.

¡    Since the beginning of June 2025, production from Akatara has averaged approximately 6,500 boe/d, thanks to an average uptime of 97.5%, supported by successful operational upgrades implemented during the scheduled May 2025 shut down and strong levels of gas demand.

l Progress on commercializing the Group’s significant Vietnam gas resource:

¡    The Nam Du/U Minh FDP has been approved by Petrovietnam, the industry regulator, and is in the final stages of government approval. 

¡     The Group is also in the final stages of negotiations on a gas sales agreement for Nam Du/U Minh, and remains confident that the negotiations are heading towards a successful conclusion.

The gas sales agreement envisages a fixed gas sales price with annual escalation, and take or pay terms consistent with industry norms, providing a predictable revenue stream for Jadestone.

¡    Invitations to bid were issued for both the proposed FPSO for Nam Du/U Minh and platform and pipeline contracts.

l All guidance metrics unchanged:

¡    2025 average production of 19,500-21,500 boe/d.

¡    2025 operating costs of US$240-280 million.

¡    2025 capital expenditure of US$105-115 million.

¡    2025-2027 free cash flow (pre debt servicing) guidance[3] of US$270-360 million.

l    Net debt at 31 August 2025 was US$53.5 million, reflecting cash balances of US$113.3 million and drawn debt of US$166.7 million.

l   The Group continues to explore strategic opportunities to complement its organic growth activities, drive value and deliver scalable growth.

Dr. Adel Chaouch, Executive Chairman of Jadestone, commented:

“Jadestone delivered a strong set of results in the first half of 2025, with our focus on operational excellence and financial discipline beginning to pay off.

Our strategy remains clear. We will continue to work diligently on optimizing the value of our producing asset base, including managing our mature assets to maximize their economic lives and push out the point of abandonment. In parallel, we continue to advance several organic and inorganic growth initiatives, with strong momentum in recent months as we progress our Vietnam gas discoveries with the Nam Du/U Minh FDP approval and Gas Sales Agreement. We remain confident that both will be finalized in the near-term, allowing us to push forward with the commercialization of this significant gas resource.

We remain focused on unlocking the underlying value we believe exists in Jadestone’s portfolio that is not reflected in the current share price, for the benefit of our shareholders.”

T. Mitch Little, Chief Executive Officer of Jadestone, commented:

“We delivered record production in the first half across our diversified portfolio, primarily driven by a full period of Akatara production, with this asset continuing to outperform the expectations set at the beginning of 2025. Our cost performance in the period was also notable, with adjusted unit operating costs reduced by 22% year-on-year. Higher revenues and lower costs, coupled with the gain from the sale of our Thailand assets in April, allowed us to generate our first H1 profit after tax since 2022.

The excellent first half performance was delivered against a backdrop of safe operations, with over 11.7 million manhours worked across the Group since our last lost-time injury. We will look to build on the first half performance by expanding margins further without compromising the safety of our people or the integrity of our assets.

The sale of our Thailand assets, a new working capital facility, cost optimization and additional oil price hedges all combined to strengthen our liquidity and financial position in the period. With uncertainty over oil prices in the near-term, the operational and financial discipline of the business is a continuing priority for Jadestone. With strong performance from Akatara and CWLH, and the initial contribution of the Skua-11ST well, we are reiterating our 2025 production guidance today following the upgrade in July. Both operating cost and capex guidance, as well as our 2025-2027 free cash flow guidance, are also unchanged.”

Jadestone have come through with $32.8m of profits for the first-half showing that the portfolio can healthy profits when strong operational performance and healthy realisations coincide. Jadestone is clearly in good nick and performing well, particularly after debottlenecking and scheduled maintenance at Akatara earlier this year which has led to sustainably higher production.

With Vietnam singled out at length in the presentation the company are clearly on the move here and were at pains to tell us that we are to expect more news soon. 

As for Montara and Stag they are both in good shape and again with new CEO Mitch having had experience at Marathon, he if anyone should be a good sign for a mature offshore FPSO setting. I remain confident that after a visit to Akatara in early November the company will have had the full spotlight on it which I think will be good.