AIM-listed Serica Energy has 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 ('LoC') facility.
The new facilities, which were oversubscribed, replaces the Company's current $525 million RBL facility, on extended maturity and improved pricing terms. The new banking syndicate comprises a total of 11 leading international banks, including all lenders under the previous facility.
Due to robust production and higher commodity prices in the first half of 2026 Serica has, as guided, generated material cash flows, holding cash of $326 million, resulting in a net cash position of $26 million as of 30 June 2026 (31 December 2025: $31 million cash, and net debt of $200 million). Following completion of the RBL, the Company has a strong balance sheet with a liquidity position pro forma for the agreed borrowing base under the new RBL of $784 million as of 30 June 2026.
Under the new RBL facilities, Serica will also have access to a further $750 million, under an accordion feature, providing the potential to extend the new Loan facility by $500 million and the LoC facility by $250 million.
Following the successful placement of $300 million of five-year senior unsecured Nordic bonds, the proceeds of which were used to repay outstanding debt, as announced on 29 April 2026, the new Loan facility will initially be undrawn.
Martin Copeland, Serica's CFO, stated:
'We are very pleased with the support received, with our existing banks having renewed their support and new banking relationships being welcomed into our bank group. Taken together with the Nordic bond, Serica now has substantial liquidity and no amortisation until June 2029, putting us in a very strong position as we pursue growth opportunities. As detailed at our Capital Markets Day in May, we have a range of attractive organic growth prospects that are competing for capital allocation, and we are in the process of contracting a rig to drill certain of those projects. The new facilities give us the flexibility to continue allocating capital in a way that will support the delivery of our growth ambitions and maximise shareholder value creation, both from our existing portfolio and through potential M&A opportunities.'
Source: Serica Energy
