WTI (June) $95.85 +$2.89, Brent (June) $105.07 +$3.16, Diff -$9.22 +27c.
USNG (May) $2.61 -11c, UKNG (May) 113.08p +0.09p, TTF (May) €45.43 +€0.195.
Oil price
Oil has just started to fall as somewhat out of the blue it seems that the peace talks may be back on in Pakistan this weekend. It appears that Iran, having seen the departure of the house Speaker from the negotiating team, may be willing to talk.
With both sides claiming the high ground don’t hold your breath for an agreement, but with an ‘obliterated’ navy Iran are finding gunboats from somewhere…
Serica Energy
Serica has announced that it is planning to arrange fixed income investor meetings in connection with a potential issuance of a senior unsecured bond.
Subject to market conditions and the availability of suitable terms, a new 5-year senior unsecured bond issuance may follow, as Serica aims to optimise its capital structure, diversifying access to funding sources, and providing additional liquidity to enhance Serica’s capital allocation optionality.
The potential bond issuance would not impact Serica’s net indebtedness position, with net proceeds being used to repay in full the outstanding Reserve Based Lending (‘RBL’) drawn debt. The RBL will remain in place to provide Serica with the flexibility to take advantage of value accretive investment opportunities as they arise – both within the portfolio and via M&A.
As of 23 April 2026, Serica had cash of $153 million and a net debt position of $78 million, a material reduction from the net debt position of $200 million as of 31 December 2025, supported by the receipt of $56 million from TotalEnergies at completion of the acquisition of the 40% stake in the Greater Laggan Area (‘GLA’) on 26 March.
Following production in Q1 2026 of 39,100 boepd, production has increased significantly, with the average in Q2 to date of 49,100 boepd reflecting improved performance at Triton and the addition of production at GLA. Guidance for 2026 remains unchanged, with production of significantly over 40,000 boepd expected.
Serica will host a Capital Markets Day on 2 June 2026, at which details will be given on planned organic growth projects. These are expected to focus on a mixture of short-cycle infill drilling and tieback options in Serica’s enlarged portfolio that offer attractive returns and rapid payback. Serica will also set out its capital allocation framework, detailing the portfolio investment to maximise shareholder value through sustaining and growing production, while maintaining a commitment to delivering attractive and sustainable shareholder returns, and retaining the resilience of a strong balance sheet.
An investor presentation has been uploaded to Serica’s website.
Serica has mandated 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 27 April.
Chris Cox, Serica’s CEO, 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.”
As usual Serica has continued to restructure its financial capability to ensure the very best ‘optionality’ as it moves forward with its strategy of inorganic growth that has so far been highly successful.
What is better is that Serica are doing this from a position of strength, indeed the planned issuance of a $250m 5-year unsecured bonds will, on the terms they will undoubtedly get, mean that they can repay the current RBL but leave it in place for the myriad of opportunities that will undoubtedly crop up.
What this does mean is that having paid off the RBL the company is freed from the mandate that requires a certain level of hedging under the t’s & c’s. But of course current hedges won’t just go away immediately and if there is some level of RBL draw in the future they will return, in the meantime it signifies that there will indeed be a lower mandated requirement to hedge.
Operationally Serica is in a very good place indeed, 1Q production was 39,100 boe/d but since then has ‘increased significantly’ and 2Q to date is averaging 49,100 boe/d ‘reflecting improved performance at Triton and the addition of production at GLA.
So, guidance for 2026 remains unchanged, with production of significantly over 40,000 boepd expected and of course with current realisations in both oil and gas mean that the 2Q numbers will be stunning and maybe for longer.
With the current level of debt at only $78m, from $200m at the end of the previous quarter, this move can only strengthen Serica’s position when assessing the many opportunities it sees in the market. Value creation is at the heart of its corporate DNA and this is a highly prudent way of future proofing the balance sheet, the scope for the company is incredible now.
Serica shares have performed well, up 11% over 1 month, +35% in 6 months and over 121% y/y but in my view this is just the start, with current high value production and now strategically positioned to take advantages of those value creating opportunities. Bucket List anchor, target price 400p easily achievable and Serica must be a great pick for investors, bring on the 2nd June…
Sintana Energy
Sintana has announced that it has received a notice of exercise in respect of stock options over 625,000 common shares of no-par value each in the Company. The options are being exercised by a consultant to the Company. The options were exercisable at the following prices: 250,000 options at a price of $0.165 per share, 200,000 options at a prices of $0.11 per share and 175,000 at a prices of $0.27 per share and the consultant has paid CAD$110,500 to the Company in respect of the exercise.
Total Voting Rights
Application has been made for admission to trading on the TSX Venture Exchange and AIM of a total of 625,000 new Common Shares of no-par value (“Admission”). Admission is expected on or about 28 April 2026. On Admission, the new Common Shares will rank pari passu with the Company’s existing Common Shares. Following Admission, the Company’s issued share capital will consist of 514,806,240 Common Shares, with each Common Share carrying the right to one vote. The Company does not hold any Common Shares in treasury.
This figure of 514,806,240 Common Shares may therefore be used by shareholders in the Company, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Nothing to add here.
Star Energy
Star has announced that it has signed an agreement for the sale of its Croatian subsidiary to Enna Geo d.o.o. IGeoPen’s direct parent is A14 Energy Limited of which Star Energy owns 71%, with 29% being owned by its JV partner, Peninsula International PTE Ltd.
IGeoPen holds three Croatian geothermal exploration licences; Ernestinovo, Sječe and Pčelić.
Consideration for the sale consists of two elements:
a) An initial cash consideration of €1.5 million – Star Energy’s share is €1.3 million reflecting the A14 Energy shareholder agreements; and
b) Financial Earn-out of €0.5 million per licence which is payable on the commercial operation date of a geothermal power plant developed on each of the three licences – Star Energy’s potential share is €1.5 million.
IGeoPen’s financial profile reflects its early-stage geothermal development activities, including a loss before tax of €3.2 million for the year ended 31 December 2024 and net liabilities of €5.5 million at that date. The forecast for the year ending 31 December 2025 includes an anticipated investment-related loss of €1.6 million.
Given the delay in the announcement of a premium price tariff for geothermal projects in Croatia by the Croatian Government, the Group believes that a sale of IGeoPen is in the best interests of its shareholders. The transaction delivers a clear strategic refocus of the Group’s portfolio, allowing management to concentrate on its core UK oil and gas and geothermal assets. It releases €5.2 million of restricted cash and removes future capital commitments arising from the Croatian licences, strengthening the balance sheet and enhancing financial flexibility, while enabling more disciplined and value-accretive capital allocation on the Group’s UK business.
IGeoPen’s activities were partially financed through the Kommunalkredit Austria AG debt facility, and a portion of the consideration will be reinvested in UK geothermal assets, in accordance with the terms of the facility, with the balance supporting general corporate purposes and ongoing strategic priorities.
The Board believes the sale is consistent with its disciplined approach to capital allocation and focus on driving shareholder value. It strengthens the Group’s balance sheet and reallocates capital away from a non-core international business.
Following completion, which is expected in H2 2026, management will be focused on the UK business and on those areas where the Board believes the best opportunities exist to create value for shareholders, namely:
· Building on our already stable and resilient oil and gas operations by continuing to deliver improvements and enhancements similar to those we have successfully implemented to date across the producing portfolio;
· Pursuing inorganic oil and gas opportunities in support of the Group’s strategy to create value from its substantial UK tax losses; and
· maintaining a capital efficient UK geothermal development platform while continuing to advocate for the policy changes needed to support investment in the sector.
Commenting today, Ross Glover, Chief Executive Officer, said:
“This transaction is about capital discipline, simplification and strategic focus. It releases meaningful cash of €5.2 million, enhances financial flexibility and enables us to focus fully on our UK operations where we see the clearest path to value creation. That puts management’s attention firmly where we see the best route to creating shareholder value: a stronger and more resilient UK oil and gas business, pursuing inorganic oil and gas growth opportunities to create value from our £250 million of tax losses, and maintaining our UK geothermal option at low cost while we continue to push for policy change in both geothermal energy but also in domestic oil and gas production.”
This is a very smart move by Star who have been making it clear that they are focusing solely on the oil and gas business, making the current operations more profitable and resilient to the oil price.
The company are planning to grow the business inorganically, and have the incredible ability to do so and leverage the £260m of tax losses. This gives them a real chance to access deals that maybe are out of the reach of others and yet will be accretive to Star.
That doesn’t mean abandoning the UK geothermal business, they will continue with that but are wisely limiting spend in that area as they have been doing for the past year. I have been much more bullish on Star for a while now and readers know that I suggested putting it on the radar screens when CEO Ross Glover made it clear that things have changed for the better.
The shares have accordingly performed well recently, they are up 7% today, +16% on the month, up 127% on 6 months and +147% y/y but I believe that there is much more to come as the market realises quite how much potential there is at Star.
And finally…
Today sees the classic trials at Sandown Park and tomorrow sees the Whitbread Gold Cup day as was, and signals the end of the jumps season.
In the Prem tonight Forest go to the Black Cats whilst tomorrow the Cottagers host Villa, a real grudge match as ever with the Eagles visiting Anfield, the Hammers entertain the Toffees, Spurs are at Wolves and the Gooners host the Magpies.
It is also FA Cup semi finals, the Noisy Neighbours face the Saints tomorrow and on Sunday Chelsea play Leeds, for someone of my age can we ever forget the battle of Old Trafford all those years ago?
And the Cricket County Championship continues around the country today.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.
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