Serica Energy PLC (AIM:SQZ) shares traded higher on Friday, climbing 4.2% to 282.8p, after it announced it is preparing fixed income investor meetings for a possible five-year senior unsecured bond, as the North Sea producer looks to refinance drawn bank debt while preserving balance-sheet flexibility.
The company said any bond issue would be subject to market conditions and suitable terms. Net proceeds would be used to repay in full the outstanding drawn debt under its Reserve Based Lending facility, though the RBL would remain in place to support potential portfolio investment and M&A.
Serica said the move would not affect its net indebtedness. As of 23 April, the company had cash of US$153 million and net debt of US$78 million, down from US$200 million at the end of December 2025. The reduction was supported by a US$56 million payment from TotalEnergies following completion of Serica’s acquisition of a 40% stake in the Greater Laggan Area on 26 March.
Current trading has also strengthened. Production averaged 39,100 barrels of oil equivalent per day in the first quarter, rising to 49,100 boepd so far in the second quarter, reflecting improved Triton performance and the addition of Greater Laggan output. Guidance for 2026 remains unchanged, with production expected to be significantly above 40,000 boepd.
Chief executive Chris Cox said the company is seeking to “optimise our capital structure” after scaling up its portfolio, adding that diversified funding would enhance capital allocation optionality. Serica will hold a Capital Markets Day on 2 June, when it plans to outline organic growth projects, including short-cycle infill drilling and tieback opportunities.