Serica Energy : Results for the year ended 31 December 2023

Serica Energy plc

("Serica" or the "Company")

Results for the year ended 31 December 2023

London, 24 April 2024 - Serica Energy plc (AIM: SQZ), a British independent upstream oil and gas company with operations in the UK North Sea today announces its audited financial results for the year ended 31 December 2023. The results are included below and copies are available at www.serica-energy.comand www.sedar.com.

Commenting on the results, David Latin, Serica's Chairman and incoming Interim CEO, stated:

"I am very pleased that Serica has delivered a strong set of results for 2023 despite significantly lower sales prices compared to 2022 and a full year of the UK marginal tax rate being at 75%. Any 'windfall' due to high commodity prices has long gone and the high tax situation is ill-suited to a mature oil and gas basin such as the UK North Sea. Its continuation will not benefit people in the UK either financially or environmentally.

The resilience of Serica's financial position allows the Company to maintain the final dividend at 14p per share meaning an increase in the total dividend for 2023 to 23p per share compared to 22p per share in respect of 2022. Furthermore, the £15 million share buyback initiated today is a demonstration of the Board's confidence in 2024 cash flows and the longer-term value of the Company's assets.

By virtue of its financial strength and in-house skills, Serica is able to combine cash returns to shareholders with growth through investment in its assets and an ambitious, while disciplined, M&A effort. This situation is a testament to the achievements of everyone in Serica.

Finally, I would like to take this opportunity to reiterate the Board's appreciation for Mitch Flegg's very significant contribution to the Company over many years, most recently as CEO since 2018."

Mitch Flegg, Serica's outgoing CEO, stated:

"The completion of the Tailwind acquisition in March 2023 represented a step change in the scale and diversity of Serica's portfolio. The merits of seeking diversity and organic growth opportunities through the transaction have been borne out by the sharp decline in gas prices relative to oil prices during 2023 and Serica maintaining its track record of more than replacing production through reserves additions in both the Bruce and Triton production hubs. Moreover, there are further growth opportunities within the Company's existing producing fields and other assets in Serica's portfolio, such as the potential Buchan Horst project.

My term as CEO ends with these results. More than the metrics of the last six years, it is the quality of the team we have built at Serica that gives me the most satisfaction and pride. Clearly, the BKR and Tailwind transactions represented the most significant organisational changes. Creating the culture and expertise of an organisation like Serica, however, is an everyday process that involves everyone in the Company. I am grateful to far too many people to mention here.

- 1 -

The result of the last several years is that Serica combines distinctive financial and operational strengths with a high-quality team, providing a platform for further returns to shareholders through investment and M&A."

2023 Summary

• Acquisition of Tailwind Energy Investment Ltd completed 23 March 2023.
• Proforma production from the combined Serica and Tailwind portfolios averaged 40,121 boe per day during 2023 as a whole. Equity production for the year as reported (excluding Tailwind volumes between 1 January and 23 March 2023) averaged 35,167 boe per day (Serica net production in 2022: 26,200 boe per day).
• Serica 2P reserves increased to 140.3 million boe at 31 December 2023 (31 December 2022: 76.9 million boe) with net upwards reserves revisions of 23.5 million boe and a proforma reserves replacement ratio of 179% for the combined Serica and Tailwind portfolio.
• EBITDAX of £381.4 million (2022: £616.5 million) reflecting an average realised sales price after hedging of $63 per boe compared to $104 per boe in 2022.
• Final 2023 dividend of 14p per share recommended (2022: 14p per share), bringing 2023 full year total to 23p per share compared to 22p per share for 2022, an increase of 4.5%.

Financial

• Average 2023 realised sales price, after hedging, of approximately US$63 per boe (2022: US$104 per boe) comprising average realised prices for gas of 93 pence per therm, oil of US$71 per barrel and NGLs of £363 per tonne.
• Revenue of £632.6 million (2022: £812.4 million), largely reflecting lower natural gas prices partially offset by nine months of production contribution from the Tailwind assets.
• EBITDAX of £381.4 million (2022: £616.5 million) reflecting the lower commodity prices whilst operating costs increased largely in line with higher production, albeit with some inflationary impact.
• Profit before tax of £305.6 million (2022: £488.2 million).
• Profit after tax of £103.0 million (2022: £177.8 million) reflecting current tax charges
  of £183.3 million (2022: £277.7 million) deriving an effective tax rate of 48% (2022: 45%), notwithstanding an increase in the marginal overall rate of tax on UK oil and gas production to 75% during 2023 and with the benefit for only nine rather than twelve months of Tailwind's brought forward tax losses.
• Cash flow from operations, after deduction of 2023 current tax, of £195 million1 (2022: £427 million). Serica considers this measure to be representative of the cash generation of the business prior to discretionary decisions regarding capital allocation.
• Capital expenditure (including exploration and abandonment) of £79.2 million largely comprising Bruce well work and long lead items for the Triton area drilling campaign commencing in 2024 (2022: £98.3 million).

1 Comprising Cash flow from operations of £378.4 million less Current tax of £183.3 million (2022: £704.9 million less £277.7 million).

- 2 -

• Cash dividends paid of £88.8 million (2022: £46.3 million) for 2022 Final and 2023 Interim dividends.
• Gross cash and cash equivalents, including £28 million of cash security temporarily lodged with a third party in respect of decommissioning obligations, of £291.0 million at 31 December 2023 (2022: £432.5 million) after capital expenditure (£79.2 million), dividends (£88.8 million) and tax paid (£279.5 million).
• Amount drawn at 31 December 2023 under the RBL facility assumed with the Tailwind acquisition of US$271.2 million (£213.0 million).
• Net cash of £78.0 million (2022: £432.5 million).
• Executed a refinancing into new six-year US$525 Reserve Base Lending ("RBL") facility with a syndicate of international banks (facility completed and borrowings assumed with the Tailwind acquisition were repaid in January 2024).

Operational

• Updated independent audit of field reserves reported Serica's share of estimated remaining 2P reserves as 140.3 million boe at 31 December 2023 increased from 76.9 million boe at 31 December 2022. Movements in the year include:
  o Acquisitions of 52.2 million boe relating to the completion of the acquisition of Tailwind Energy Investments Ltd on 23 March 2023.
  o Net upward revisions of 23.5 million boe reflecting better than expected production performance in the Rhum and Gannet E fields, the movement of Belinda from contingent resources to 2P reserves and the maturing of projects to enhance production from the Bruce and Rhum fields.
• A series of surveillance and interventions carried out on several Bruce wells by means of platform based and Light Well Intervention Vessel ("LWIV") activities. These interventions delivered incremental near-term production and identified additional intervention opportunities for future well campaigns.
• The GE-04 well on the Gannet E field came onstream in February 2023 and achieved initial rates higher than pre-drill estimates. This contributed to the Triton hub reaching gross production levels in excess of 30,000 boe per day for the first time in ten years.
• A 'walk to work' campaign was conducted on the Triton FPSO, continuing the maintenance and upgrades that have been pivotal in improving the performance of the facilities and hydrocarbon throughput. A key item of work currently is the replacement of the Triton control system, which is planned to be completed during a further 'walk to work' campaign planned in 2024.
• Work was carried out to remove power supply vulnerabilities to the Rhum field including the installation of a new power umbilical on one of the three Rhum production wells.
• Planned shutdowns in 2023 of both the Bruce and Triton hubs to carry out essential maintenance and life extension work were extended unexpectedly. On Bruce, it was decided to make permanent rather than temporary repairs to issues identified on the flare tower during an inspection, which, in combination with bad weather, caused an approximate one-month overrun. The Triton shutdown was extended due to a combination of equipment and control system issues, which are now resolved.
• Serica elected to relinquish the P.2501 North Eigg licence following the evaluation of the results of the exploration well on the prospect in 2022. The relinquishment will be completed during 2024.

- 3 -

ESG

• Achieved lowest Scope 1 Carbon Intensity (16.36kg CO2/boe) since taking operatorship of Bruce.
• Received Supply Chain Principles Gold Award for companies demonstrating outstanding commitment to business relationships.
• 33% reduction in methane emissions compared to 2022.
• Awarded Gold Standard Pathway for methane reduction and monitoring plans from the Oil and Gas Methane Partnership (OGMP) 2.0.

Outlook

• The Triton area drilling campaign started earlier this month with the first well in the programme being the B1z sidetrack on the Bittern field. The programme using the COSLInnovator rig now comprises five wells with the addition of the 100% owned Belinda development well. Serica has taken a final investment decision on Belinda and is waiting for NSTA approval of the field development plan.
• An extensive programme of well interventions is being carried out on the Bruce and Keith fields during 2024. It is hoped to bring the Keith field back into regular production during this year.
• Capital expenditure in 2024 (cash spent) is estimated at around £170 million, based on sanctioned projects previously disclosed, plus up to £25 million on the newly sanctioned Belinda development.
• The production guidance range for 2024 is updated to 41,000 - 46,000 boe/d. The narrowing of the range from 41,000 - 48,000 boe/d factors in the unplanned shut-in of Erskine (production recently restarted and expected to ramp up), production to date in 2024 from the rest of the portfolio and the later than expected start of the Triton area drilling programme. Notwithstanding the shut-in of Erskine, production in 2024 year-to-date2 has averaged about 45,400 boe per day. Production in the second half of 2024 will be impacted by the planned 40-day shutdown of the Triton area for maintenance work.
• Targeting operating costs at around US$20 per boe produced during 2024 despite significant inflationary pressures.
• Production for 2025 is anticipated to be in the same range (41,000 - 46,000 boe/d) as 2024 reflecting the updated view coming out of 2024 and slippage in some of the planned work in the Bruce and Triton hubs.
• New commodity price hedges being added to supplement the existing fixed price hedges coming to an end during 1H 2024. Initially, these are weighted towards oil in view of current market levels, run through to Q1 2026 and are mainly 'collars' affording downside protection while retaining upside exposure. Currently3, hedges are approaching a quarter of Serica's projected production volumes (c.10 kboe/d for 2024, tapering to around 6 kboe/d by Q1 2026).
• A draft FDP has been submitted for the Buchan Horst field. As with all major capital projects, a final investment decision, which is not expected before the latter part of

1. 14 April 2024
2. As at 18 April 2024

- 4 -

2024, depends in part on the impact on project economics of expectations for the future tax regime which will apply through the life of the project.

• Subject to shareholder approval at the AGM, a final 2023 dividend of 14p per share will be payable on 24 July 2024 to shareholders registered on 28 June 2024 with an ex-dividend date of 27 June 2024.
• Additionally, a £15 million share buyback is being initiated today under the authority granted at the AGM in 2023. This reflects the confidence of the Board in the Company's current financial position, the cash generating capacity of the portfolio during 2024 and the long-term value of the assets. Serica will look to provide further detail on its future policy of cash returns to shareholders in due course. This policy will be framed by reference to Serica's post-tax operating cash flow, its organic and inorganic investment opportunities, and the maintenance of a prudent balance sheet.
• After six years on the Serica Board, Malcolm Webb has informed the Board of his wish not to stand for re-election at the forthcoming AGM. As chair of the Nominations Committee, Malcolm will continue to lead the CEO recruitment process. It is anticipated that an announcement on the conclusion of this process will be made by the time of the AGM in June. The Board is very grateful for Malcolm's considerable contribution to the transformation of the Company over the last several years.

A conference call for sell-side analysts will be held today at 9:30 am (BST). If you would like to participate, please email [e-mail]. A copy of the accompanying presentation can be found on our website: www.serica-energy.com.

Investor Presentation

David Latin (Chairman and Interim CEO) and Martin Copeland (CFO) will provide a live presentation relating to the full year results via the Investor Meet Company platform today at 2.00pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted via the Investor Meet Company dashboard at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Serica Energy plc via:

https://www.investormeetcompany.com/serica-energy-plc/register-investor

Investors who already follow Serica on the Investor Meet Company platform will automatically be invited.

Regulatory

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014 as retained in the UK pursuant to S3 of the European Union (Withdrawal) Act 2018.

The technical information contained in the announcement has been reviewed and approved by Fergus Jenkins, VP Technical at Serica Energy plc. Mr. Jenkins (MEng in Petroleum Engineering from Heriot-Watt University, Edinburgh) is a Chartered Engineer with over 25 years of experience in oil & gas exploration, development and production and is a member of the Institute of Materials, Minerals and Mining (IOM3) and the Society of Petroleum Engineers (SPE).

- 5 -

Enquiries:
Serica Energy plc	[phone]
David Latin (Chairman and Interim CEO) / Martin
Copeland (CFO) / Stephen Lambert (VP Legal and
External Relations)
Peel Hunt (Nomad & Joint Broker)	[phone]
Richard Crichton / David McKeown / Georgia
Langoulant
Jefferies (Financial Advisor & Joint Broker)	[phone]
Sam Barnett / Will Soutar
Vigo Communications	[phone]
Patrick d'Ancona / Finlay Thomson	[e-mail]

- 6 -

CHAIRMAN'S STATEMENT

Dear Shareholder

Without doubt times are currently difficult for independent oil and gas companies working in the UK. However, I am pleased to say that Serica is no ordinary company, and it is strong and well equipped to withstand the current headwinds. The purpose of the Company remains to contribute responsibly towards meeting the world's energy needs through the safe and efficient production of hydrocarbons. Its Board is resolute that it will stay focussed on responsible capital allocation to invest prudently in our business whilst also delivering increasing returns for shareholders over time. We do this by investing in our mid to late life assets, optimising them and extending their lives, while seeking opportunities to further add value through operationally and financially accretive acquisitions. Given the significant fiscal uncertainty driven by both major political parties in the UK, we have stepped up efforts to identify attractive opportunities to apply our approach in the broader North Sea region.

2023 in Overview

In operational terms, 2023 was another year of sound progress at Serica. Notwithstanding an unexpectedly long summer maintenance shut down, we again delivered within the range of our production guidance, and more than replaced production for the 6th year in succession.

The troubling developments in 2023 (and sadly again in 2024) came from Westminster. First, the Government elected to keep its supposed 'Windfall' Profits Tax in place long after any possible justification for it based on oil and gas prices had disappeared and then most recently in the Spring budget announced that they would extend it by a further year to 2029. Second, the Labour Party announced that, if elected to Government, they would not only increase the rate of the tax to 78% but also significantly reduce the amount of capital relief on investment as compared to the current regime. Uncertainty caused by political short termism risks killing off investment across the UK sector of the North Sea and with it the associated high-quality jobs this creates throughout the UK. It would seem that the established policy of maximising the economic recovery of the UK's remaining reserves of oil and gas in support of the energy transition has been abandoned. Instead, our politicians appear to have embarked on a race to the bottom with policy aimed at maximising the near-term Government take, notwithstanding that this will necessarily accelerate both production decline and the timing of decommissioning, which in turn will inevitably reduce Government overall receipts from UKCS and serve only to increase imports of oil and gas to the UK. Imported production can easily be interrupted, pays no UK taxes, sustains no UK jobs, and often involves greater carbon emissions. This policy volte face is a sad demonstration of the elevated level of UK political risk which our industry now faces and has necessarily caused all companies operating on the UKCS, including Serica, to reconsider their UK investment plans.

Significant Developments in 2023

The acquisition of Tailwind Energy was completed in March. Amongst other benefits flowing from this acquisition, our portfolio of producing assets became more evenly balanced between oil and gas, which had the consequence (consistent with one of our objectives from the Tailwind transaction) of reducing the impact of falling gas prices through the year

• a trend which has continued into 2024. Serica also signed an innovative deal to add to our resource hopper by farming into Jersey Oil and Gas's project to redevelop existing discovered resources in the Buchan field. We will be continuing to work this pre-sanction opportunity with our partners in the field during 2024. At the same time, our team supplemented by the expertise of our new former Tailwind colleagues, continued to identify opportunities to invest in our existing assets, providing significant additions to our oil and gas reserves in both our hubs, and so providing potential to defer decommissioning activities.
• • 7 -

The Company's Finances

Serica's finances remain strong despite reduced commodity prices and the impact of unwelcome high tax rates, with revenues of £633 million (£812 million in 2022). Group Profit before taxation for 2023 amounts to £306 million (£488 million in 2022). After providing for the impact of materially increased taxes, profit after tax for 2023 was £103 million (£178 million in 2022). Furthermore, the Company retains the confidence of major financial institutions and hence was able to raise significant support in the form of a new US$525 million reserve-based loan facility completed in January 2024. This loan facility, together with our existing cash balances, provide us with flexibility for capital allocation in line with our stated strategy of investing in our assets, disciplined M&A and ensuring robust shareholder distributions.

Outlook and Policy

Notwithstanding the current political turbulence, Serica will continue to seek ways to invest in our UK assets where we believe such investments will create value for our shareholders. Given our operational skills and very low exposure to decommissioning cost (our liabilities are among the lowest in the UKCS), we are better placed to do this than most. However, our ambitions for increased shareholder value are far greater than simply maximising returns from our current portfolio of assets. If good opportunities for increased value should arise in the UK of course we will not ignore them, but in the current circumstances we must consider other alternatives. Hence the Board has now refocused and increased its search for projects outside the UK where we believe we can deploy our skillsets to deliver increased shareholder value. We are currently focussed on identifying attractive opportunities in the broader North Sea region beyond the UK. However, we will remain disciplined and will only invest in projects or make acquisitions where we are confident that they will deliver increased value and returns for shareholders.

Shareholder Distributions

The Board of Serica is committed to a shareholder distribution policy which reflects the underlying performance and ambitions of the Company and so provides a good return to shareholders whilst also leaving room for investment in continuing asset growth. The total dividend for 2022 was 22 pence per share returning £76 million to shareholders. In November 2023 we paid an interim dividend of 9 pence per share. Subject to approval of shareholders at the Annual General Meeting in June 2024, we are proposing a final dividend of 14 pence per share, bringing the total dividend for the year to 23 pence per share. In addition, in response to the Board's view on the intrinsic value of the Company, we are today announcing a Share Buyback programme which will contribute to the shareholder distributions in respect of 2024.

Board and Management Changes

In February 2024, after many years of exemplary service within the Company and having played a leading role in the structuring and closing of the BKR acquisition, Andy Bell retired. I was then delighted to welcome Martin Copeland to the Board as the new Chief Financial Officer. Martin has a wealth of highly relevant experience in the banking and M&A sectors and is a fine addition to the team. We are extremely grateful that Andy has stayed on to provide support to ensure a smooth transition of the CFO role.

Also in January, we announced that Mitch Flegg will step down from his role as CEO in April following publication of the 2023 results. Mitch is leaving the Company later this year after the AGM with our heartfelt thanks for all his excellent work over his six years as CEO and before that as COO. Amongst his many achievements, Mitch successfully managed the integration of the BKR assets and led the acquisition and integration of Tailwind in 2023. He will leave a Company in robust health positioned for future growth.

- 8 -

As previously announced, upon Mitch's departure I will move into the role of interim CEO during the search to identify and appoint a permanent CEO to lead the next phase of the Company's development.

After six years on the Serica Board, Malcolm Webb our Senior Independent Director, has informed the Board of his wish not to stand for re-election at the AGM. As chair of the Nominations Committee, Malcolm will continue to lead the CEO recruitment process which is now at an advanced stage. It is anticipated that an announcement on the conclusion of this process will be made by the time of the AGM in June. The Board is very grateful for Malcolm's considerable contribution to the transformation of the Company over the last several years.

I wish to take this opportunity to record a special tribute to Tony Craven Walker, who retired as Chairman of the Board in June 2023. Tony is a legendary figure in the industry and the effective founder and creator of Serica as we know it today. It is not an overstatement to say that without Tony, Serica would not have survived, let alone thrived as it has. His was the inspiration behind the Erskine deal and the genius and determination behind the company-making BKR acquisition. But above and beyond all that, Tony inspired the commercial, operational and corporate aspirations of our Company. We continue to aspire to the high standards that he set. We are also so very pleased and honoured that he remains a substantial shareholder in the Company.

Finally, and on behalf of the Board I extend thanks to the Serica team, especially to all employees, whether based in Aberdeen, London or Offshore, for their efforts throughout the last year and the enthusiasm and professionalism which they bring to their work every day. Thanks also to colleagues working alongside us in our supply chain, whose partnership is a vital element of our continued success. And, last but not least, a thank you to all shareholders for your investment in and support for our Company, which I can assure you is greatly appreciated and which I and all at Serica will do our very best to justify.

David Latin

Chairman

23 April 2024

- 9 -

STRATEGIC REPORT

The following Strategic Report of the operations and financial results of Serica Energy plc ("Serica") and its subsidiaries (the "Group") should be read in conjunction with Serica's consolidated financial statements for the year ended 31 December 2023.

References to the "Company" include Serica and its subsidiaries where relevant. All figures are reported in GB Sterling ("£") unless otherwise stated.

The Company is subject to the regulatory requirements of AIM, a market of the London Stock Exchange in the United Kingdom. Although the Company delisted from the Toronto Stock Exchange ("TSX") in March 2015, the Company is a "designated foreign issuer" as that term is defined under Canadian National Instrument 71-102 - Continuous Disclosure and Other Exemptions Relating to Foreign Issuers.

Serica is an independent oil and gas company with production, development and exploration interests in the UK Continental Shelf.

- 10 -