Ithaca Energy to buy remaining stake in Fotla discovery

12th Jul 2023 07:05

(Sharecast News) - Ithaca Energy announced the signing of a sale and purchase agreement on Wednesday to acquire the remaining 40% stake in the Fotla discovery, along with three exploration licenses, from Spirit Energy Resources.

The FTSE 250 company said the acquisition would see it increase its working interest in the Fotla discovery to 100%, granting it full control over pre-final investment decision work and timing.

It said the Fotla Discovery is situated in Block 22/1b of the UK North Sea, about 10 kilometres southwest of Ithaca's Alba field.

The field, which was discovered in August 2021 through the drilling of the 22/1b-12 well and subsequent appraisal with two side-tracks, is located in water depths of around 431 feet.

Currently, the firm said it was evaluating development plans for the field, with the aim of starting production in 2026.

The proposed field development plan would involve a subsea tieback to existing infrastructure.

Looking at the transaction, Ithaca said total consideration would consist of two capped contingent payments.

Around two-thirds of the consideration would be payable on final investment decision, while the remaining third would be paid on first production.

"We are pleased to announce the acquisition of the remaining stake in the Fotla Discovery and three additional exploration licences," said chief executive officer Alan Bruce.

"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."

Reporting by Josh White for Sharecast.com.