UK Oil & Gas Sector – Regaining Momentum as a Strategic Hub for Energy Investment

This is the updated version of the report published on December 03, 2025, 09:42 AM GMT

Section 1.0. UK Oil & Gas Sector Landscape, Trends & SWOT Analysis

The oil and gas sector will act as a critical engine for economic stability during a downturn. It will provide essential energy security for industry and households, while its major infrastructure projects will sustain significant capital expenditure and skilled employment, thereby supporting a foundation for eventual growth.

Kalkine’s Sector Report covers the Sector Landscape, Trends & SWOT Analysis, Risks, Recent Business Updates along with the Valuation, Target Price, and Recommendation on the stock.

Section 2.0. Sector Risks & Opportunities

The oil and gas sector is solidifying its essential role through disciplined capital allocation and operational excellence. Targeted investment in decarbonization technologies, digitalization, and robust ESG frameworks is enhancing long-term resilience. This strategic focus is building a more efficient and sustainable industry, positioning it to reliably meet transitional energy demand while contributing to energy security.

Section1: Company Overview

Serica Energy PLC

Serica Energy PLC (LSE: SQZ) is an FTSE AIM UK 50 index-listed United Kingdom-based oil and gas company. The Company has exploration and development activities based in the United Kingdom, Ireland, Namibia, and Morocco and an economic interest in an oilfield offshore Norway. 

This Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock. 

Section2:  Financial Highlights – H1 FY25

Section 3:  Stock Recommendation Summary

Valuation Methodology: Price to Earnings Multiple Relative Valuation (Illustrative):

The stock has witnessed a downside of ~11.39% and of ~7.14% over the 1 week and 3 months respectively. It is trading below the average of 52-week high price of GBX 223.00 and 52-week low price of GBX 112.00, providing an opportunity to accumulate the stock.

Section4: Company Overview

Jadestone Energy PLC

Jadestone Energy PLC (LSE: JSE) listed on the FTSE AIM All-Share, is an independent upstream oil and gas company focused on development and production. It targets the Asia Pacific region, with a portfolio of assets in Australia, Indonesia, Malaysia, and Vietnam.

This Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section5:  Financial Highlights – H1 FY25

Section 6:  Stock Recommendation Summary

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative):

The stock has witnessed a downside of ~6.88% and an upside of ~17.94% over the 1 week and 3 months respectively. It is trading below the average of 52-week high price of GBX 33.00 and 52-week low price of GBX 17.00, providing an opportunity to accumulate the stock.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 03 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/ or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.