Ithaca Energy (LON:ITH) has announced it has signed a Sale and Purchase Agreement to acquire the 40% stake in the Fotla Discovery it doesn’t already own and three exploration licences (P.213 Area C, P.345 Area A and P.2536) from Spirit Energy Resources Limited. The Acquisition, which is subject to the satisfaction of certain conditions precedent including regulatory approval, and with limited near-term cash outflow, will bring the Group’s working interest in the Fotla Discovery to 100% at completion, providing Ithaca Energy with full control over pre-final investment decision work and timing.
The Fotla Discovery, operated by Ithaca Energy, is located in Block 22/1b of the UK North Sea in 431 ft of water, approximately 10 km southwest of the Ithaca Energy operated Alba field. The field was discovered in August 2021 by the Group’s drilling of the 22/1b-12 well and subsequently appraised by two side-tracks. As previously stated, development plans are currently being evaluated, with first production from the Fotla Discovery targeted in 2026. The conceptual field development plan consists of a subsea tieback to existing infrastructure.
The total transaction consideration comprises two capped contingent payments, which are payable approximately two thirds on final investment decision and a third on first production.
Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: “We are pleased to announce the acquisition of the remaining stake in the Fotla Discovery and three additional exploration licenses. The acquisition will provide Ithaca Energy with full control over the pre-final investment decision work programme and timing of project sanction as we seek to maximise value from our high-quality investment portfolio.”
Ithaca Energy is a leading UK independent exploration and production company focused on the UK North Sea with a strong track record of material value creation. In recent years, the Company has been focused on growing its portfolio of assets through both organic investment programmes and acquisitions and has seen a period of significant M&A driven growth centred upon two transformational acquisitions in recent years. Today, Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (the “UKCS”), ranking second by resources.
With stakes in six of the ten largest fields in the UKCS and two of UKCS’s largest pre-development fields, and with energy security currently being a key focus of the UK Government, the Group believes it can utilise its significant reserves and operational capabilities to play a key role in delivering security of domestic energy supply from the UKCS.
