Ithaca Energy Acquires North Sea Assets from GDF Suez

abarrelfullabarrelfull wrote on 11 Jun 2014 11:38
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Ithaca has agreed to acquire an interest in each of the areas described below.

Anglia Field - Operated (subject to partner and regulatory approvals)

  • Ithaca has agreed to acquire a 30% interest in and subject to approvals, may become operator of the producing Anglia Field which is located in Blocks 48/18b, 48/19b and 48/19e of the UK North Sea gas basin. On or about the date of this press release, GDF SUEZ E&P UK Ltd estimates that in excess of 2 mmboe of additional net possible reserves lie within the field. GDF SUEZ E&P UK Ltd is currently the operator of the Anglia Field and the gas is currently contracted for the life of the field.

Topaz Field - Non Operated

  • Ithaca has agreed to acquire a 35% interest in the producing Topaz Field which is located in Blocks 49/1a and 49/2a in the UK Southern North Sea. The gas is currently uncontracted.

Garnet Field - Operated

  • Ithaca has agreed to acquire a 68.33% interest in and, subject to regulatory approvals, operatorship of the undeveloped Garnet Field which is located in Block 44/27a in the UK Southern North Sea. The Garnet Field was discovered in 1986 and to date one well has been drilled, and one further appraisal well has been drilled off structure.

Opal Field - Operated

  • Ithaca has agreed to acquire a 53.84% interest in and, subject to regulatory approvals, operatorship of the pre-development Opal Field which is located in Block 43/25a in the UK Southern North Sea. The Opal Field was discovered in 2005 and to date one well has been drilled which was geologically sidetracked to appraise the limits of the field.

Terms of the Acquisition

The Acquisition will be effected through a sale and purchase agreement ("SPA") between Ithaca Energy (UK) Limited, as the purchaser, and GDF SUEZ E&P UK LTD, as the seller. The Acquisition has an effective date of 1st January 2010. The SPA contains customary provisions for a transaction of this nature in the oil and gas sector.

The consideration will be a cash payment by Ithaca at completion of GBP 11.25 million (approximately US$16.9 million), subject to customary transaction adjustments, including the deduction of net revenue from the effective date. The Acquisition is expected to close on or before the end of Q4 2010.

Financing of the Acquisition

Ithaca will fund the Acquisition through cash on hand.

Advisor

CIBC World Markets plc acted as Exclusive Financial Advisor to Ithaca on the Acquisition.

Iain McKendrick, CEO, commented:

"This acquisition demonstrates that the Company is executing on its stated strategy which includes the acquisition of existing production and discoveries on attractive terms. The interests being acquired will add immediate production and additional cash flow to Ithaca while offering medium-term development and enhancement potential. The Company shall continue to pursue similar accretive opportunities to grow."


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