ABERDEEN, SCOTLAND--(Marketwired - Dec 20, 2013) -
(TSX VENTURE: IAE)
Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States
Ithaca Energy Inc.
Handcross Transaction
20 December 2013
Ithaca Energy Inc. (TSX VENTURE: IAE) (LSE AIM: IAE) ("Ithaca" or the
"Company")
announces execution of an agreement with Oyster Petroleum Limited
("Oyster Petroleum") that results in further monetisation of the
Handcross exploration prospect ahead of drilling the scheduled
commitment well. The Company also announces that it has entered into
an agreement with TOTAL E&P Norge AS ("TOTAL") to acquire a 10%
non-operated interest in licence PL102 (F&G) in the Norwegian North
Sea.
Highlights
- Divestment of a further 6% working interest in the Handcross
exploration well to Oyster Petroleum for a cash consideration, thereby
reducing the Company's working interest to 25%.
- Acquisition of a 10% working interest in the TOTAL-operated"Trell"
prospect in the Norwegian North Sea.
- The transactions are in line with the Company's strategy to both
minimise its exposure to the UK exploration commitments transferred as
part of the Valiant Petroleum plc ("Valiant") acquisition and
restructure the former Valiant portfolio in Norway to focus on lower
risk geological and geographic opportunities capable of monetisation
prior to development.
Handcross Exploration Well
Ithaca has entered into an agreement with Oyster Petroleum concerning
UK licences P1631 and P1832 (blocks 204/14c, 204/18b and 204/19c),
which contain the Handcross prospect. The agreement will result in the
transfer of a further 6% working interest in the licences, thereby
reducing Ithaca's working interest from 31% to 25%. Ithaca retains
operatorship of the licences.
When combined with the previously announced Handcross farm-outs, Ithaca
has a fully carried interest in the exploration well that is to be
drilled on the prospect and in addition will receive cash payments from
the various agreements.
Handcross is a Palaeocene prospect located in the Judd Basin in the
West of Shetland sector of the UK Continental Shelf. An exploration
well is to be drilled on the prospect using the Stena Carron drillship,
with operations anticipated to commence shortly. The results of the
well will be announced once available.
Completion of the transaction is subject to normal regulatory and third
party consents. Following completion of the various P1631 and P1832
transactions, the Handcross partners will be Ithaca (25%, Operator),
Edison (25%), RWE Dea (20%), Sussex Energy (15%) and Oyster Petroleum
(15%).
PL102 (F&G) Norwegian North Sea Farm-in
Ithaca has entered into an agreement with TOTAL to acquire a 10%
non-operated working interest in licence PL102 (F&G) in the Norwegian
North Sea. The licence contains the "Trell" prospect, which TOTAL has
just commenced drilling using Ocean's Leiv Eriksson semi-submersible
rig. Trell lies within approximately 20 kilometres of the Alvheim and
Heimdal production hubs and in proximity to a number of existing oil
discoveries. Completion of the PL102 (F&G) transaction is subject to
normal regulatory consents. Following completion, the licence partners
will be TOTAL (40%, Operator), Petoro (30%), Centrica (10%), Det Norske
Oljeselskap (10%) and Ithaca (10%). The forecast gross pre-tax cost of
drilling the well is approximately $50 million (100%) or $11 million
(100%) post the applicable Norwegian 78% tax refund.
- ENDS -
Enquiries:
Ithaca Energy
Les Thomas lthomas@ithacaenergy.com +44 (0)1224 650 261
Richard Smith rsmith@ithacaenergy.com +44 (0)1224 652 172
FTI Consulting
Edward Westropp edward.westropp@fticonsulting.com +44 (0)207 269 7230
Georgia Mann georgia.mann@fticonsulting.com +44 (0)207 269 7212
Cenkos Securities
Neil McDonald nmcdonald@cenkos.com +44 (0)131 220 6939
Beth McKiernan bmckiernan@cenkos.com +44 (0)131 220 9778
RBC Capital Markets
Tim Chapman tim.chapman@rbccm.com +44 (0)207 653 4641
Matthew Coakes matthew.coakes@rbccm.com +44 (0)207 653 4871
About Ithaca Energy
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas
operator focused on the delivery of lower risk growth through the
appraisal and development of UK undeveloped discoveries, the
exploitation of its existing UK producing asset portfolio and a
Norwegian exploration and appraisal business targeting the generation
of discoveries capable of monetisation prior to development. Ithaca's
strategy is centred on generating sustainable long term shareholder
value by building a highly profitable 25kboe/d North Sea oil and gas
company. For further information please consult the Company's website
www.ithacaenergy.com .
About Oyster Petroleum
Formed in summer 2013, Oyster Petroleum is a new exploration and
production company focused on the UKCS. The company is financially
backed and fully funded by HitecVision, a leading international oil and
gas investor. HitecVision has committed funds of USD150 million to
Oyster Petroleum from its HitecVision VI L.P. fund. Since 2003,
HitecVision has invested in a number of highly successful start-ups in
the North Sea, including Revus Energy, Noreco, Spring Energy, Core
Energy and Spike Exploration.
Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States
Forward-looking statements
Some of the statements and information in this press release are
forward-looking. Forward-looking statements and forward-looking
information (collectively, "forward-looking statements") are based on
the Company's internal expectations, estimates, projections,
assumptions and beliefs as at the date of such statements or
information, including, among other things, assumptions with respect to
production, drilling, well completion times, future capital
expenditures, future acquisitions and cash flow. The reader is
cautioned that assumptions used in the preparation of such information
may prove to be incorrect. When used in this press release, the
words"anticipate", "continue", "estimate", "expect", "may",
"will","project", "plan", "should", "believe", "could", "target" and
similar
expressions, and the negatives thereof, whether used in connection with
operational activities, production forecasts, budgetary figures,
potential developments or otherwise, are intended to identify
forward-looking statements. Such statements are not promises or
guarantees, and are subject to known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements.
The Company believes that the expectations reflected in those
forward-looking statements and are reasonable but no assurance can be
given that these expectations, or the assumptions underlying these
expectations, will prove to be correct and such forward-looking
statements and included in this press release should not be unduly
relied upon. These forward-looking statements speak only as of the date
of this press release. Ithaca Energy Inc. expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statement contained herein to reflect any change
in its expectations with regard thereto or any change in events,
conditions or circumstances on which any forward-looking statement is
based except as required by applicable securities laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END