Ithaca was last year definitely in a race to see whether its cashflow could start and releive the crushing debt position of the company. The start of production at Jacky in April, coupled with the earlier Dyas transaction has certainly helped but now comes what coul wsell be a masterstroke in making IAE more interesting to many. Heck, it could turn IAE from Prey into a potential predator down the line.
Today weve seen the early conversion of the Dyas loan which leaves IAE debt free and with a further $35.8m cash payment from Dyas and cashflow, things are defintiely looking up.
This has just been RNSd:
http://www.investegate.co.uk/Article.aspx?id=20090629140846M8719
snippit:
Ithaca and Dyas have revised the working interest positions in its key assets through this transaction
as follows:
/T/
------- ----------------------- ---------------
Pre Post 1/11/08 Post Revised
1/11/08 (excluding 2008 option) Transaction
------- ----------------------- ---------------
Asset Type Ithaca Ithaca Dyas Ithaca Dyas
% % % % %
Beatrice Production 100 74.75 25.25 50.00 50.00
Jacky Production 90 67.28 22.73 47.50 42.50
Athena Development 70 52.33 17.68 22.50 47.50
Carna Development 40 29.90 10.10 16.00 24.00
Stella Development 66.67 49.83 16.83 35.00 31.67
/T/
In addition, equity in all of Ithaca's remaining exploration assets will also be transferred, such
that Dyas will acquire a final equity holding equivalent to 50% of Ithaca's equity positions
immediately prior to the Effective Date.
I think that the comment form the CEO sums it all up very nicely:
Iain McKendrick, CEO of Ithaca said:
"This is a major step forward, putting the Company onto an excellent long term footing. This revised
deal leaves the Company debt free and with financial resources sufficient to finance a manageable
future capital expenditure program that will develop existing projects as well as new opportunities.
The Company now has a diverse portfolio and is poised for growth from the platform that has been
created through this second transaction with Dyas. I regard this as a transformational move, securing
the future of Ithaca in an exciting environment in which to expand".
Slightly churlish reaction from the market Id have said and certainly IAE looks a much happier place to invest following the deal.
D
