North Sea oil and gas player Serica Energy said it has agreed to acquire Pharos Energy — which has operations in Egypt and Vietnam — for around £145.7 million in cash.

Serica CEO Chris Cox said: “The acquisition of Pharos is a compelling opportunity to deliver a first step in our long-standing strategic objective of adding to the diversification of our business through international expansion, on terms that are accretive on a per share basis across all key metrics, with multiple embedded growth options.

“Upon completion the transaction will boost our reserves, resources and add materially cash-generative production, while at the same time delivering an attractive liquidity route for Pharos shareholders.

“Pharos brings a highly experienced regional team and an operating model that mirrors our own focus on cash generation funding both growth and returns.

“As we continue to invest in the UK North Sea, with a multi-well rapid return drilling programme set to begin in 2027, this presents a complementary platform from which to grow in South East Asia, a region with increasing energy demand that benefits from a supportive environment for upstream investment.

“With a robust balance sheet and material ongoing cash generation, we continue to analyse multiple opportunities to deliver further M&A and create significant value for shareholders.”

Under the agreement, Pharos shareholders will be entitled to receive 28.6683 pence in cash per Pharos share plus 4 pence in cash per Pharos share by way of special dividend to be paid from Pharos’ existing cash resources.

The aggregate value of the cash consideration and the special dividend, 32.6683 pence per Pharos share, values the share capital of Pharos at approximately £145.7 million and represents a premium of 28.6% to the undisturbed closing price of 25.4 pence per Pharos share on June 23, 2026.