The acquisition includes operated interests in the producing Anglia Field, for which the assumption of operatorship is subject to certain approvals, and the Garnet and Opal discoveries, and a non operated interest in the producing Topaz Field.
The company believes the acquisition has the potential to create significant additional value through the further exploitation and optimization of the acquired interests.
Ithaca said that the acquisition strengthens and diversifies its existing UK North Sea production asset portfolio by providing several operational and financial benefits including the addition of the Anglia Field (operatorship of which is subject to partner and regulatory approval) that provides diversification to the company’s other operated assets that include the producing Beatrice/Jacky fields and the Athena and Greater Stella Area developments.
The benefits also include the enlargement and diversification of the company’s production base through the addition of net estimated 2010 production of over six million standard cubic feet per day (1,000 barrels of oil equivalent per day) based on its management’s estimates.
The acquisition will be effected through a sale and purchase agreement between Ithaca, as the purchaser, and GDF Suez E&P UK, as the seller. The acquisition has an effective date of January 1, 2010.
The consideration will be a cash payment by Ithaca at completion of GBP11.25m (approximately $16.9m), 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 the fourth quarter of 2010.
