REG - Ithaca Energy PLC Delek Group - DLEKG - Acquisition of additional interest in Cygnus Field

Ithaca EnergyAnnouncement

Tue 07:00

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RNS Number : 3746J  Ithaca Energy PLC  20 May 2025

ITHACA ENERGY PLC

("Ithaca Energy", the "Company" or the "Group")

 

Acquisition of additional interest in Cygnus Field

20 May 2025

 

Ithaca Energy, a leading UK independent production and growth company, is
pleased to announce it has signed a sale and purchase agreement to acquire an
additional 46.25% stake in the Cygnus gas field from Spirit Energy for a
purchase price of £116 million (approximately $154 million) (the
"Transaction"), based on an effective date of 1 January 2025. The Transaction,
which is subject to NSTA consent, will increase Ithaca Energy's operated
interest in Cygnus to 85%.

 

The Transaction is expected to add 23 mmboe of 2P reserves (as at 1 Jan 2025)
and pro forma production between 12.5 - 13.5 kboe/d in 2025, enhancing the
balanced production mix of our portfolio through additional gas volumes. This
Transaction is in line with the Group's strategy to pursue value-accretive
M&A, adding high-quality assets in our core UK Continental Shelf market.
The Transaction equates to a valuation of less than $7/boe on 2P Reserves,
which we believe is good value for equity in a producing field that we know
and understand.

 

Cygnus is the largest UK Continental Shelf gas field and a key contributor to
the UK's energy security. Production started in 2016 with 11 wells currently
producing, with three further infill wells approved, with the Valaris Norway
on location with the first of the two firm wells to be spud in Q2 2025, and
expected onstream during H2 2025 and H1 2026. The field is located in the
Southern North Sea in blocks 44/11a, 44/11b and 44/12a in water depths in the
range of 15 to 25 meters.

 

Yaniv Friedman, Executive Chairman, commented:

 

"Today's transaction with Spirit Energy provides further equity in a
high-margin, high-quality producing gas asset that we understand deeply
through our operatorship. This deal follows our Japex (Seagull) deal announced
just two months ago and further demonstrates our growth strategy in action. By
increasing our stake in Cygnus we add incremental reserves and production to
our portfolio at attractive valuation metrics that ticks all of our investment
criteria, without adding any complexity. We also see significant upside
potential through further infill drilling beyond the next three approved
wells. This is the type of deals we like."

 

Enquiries

 Ithaca Energy
 Kathryn Reid - Head of Investor Relations, Corporate Affairs &      kathryn.reid@ithacaenergy.com (mailto:kathryn.reid@ithacaenergy.com)
 Communications

 FTI Consulting (PR Advisers to Ithaca Energy)                       +44 (0)203 727 1000
 Ben Brewerton / Nick Hennis                                         ithaca@fticonsulting.com (mailto:ithaca@fticonsulting.com)

About Ithaca Energy plc

Ithaca Energy is a leading UK independent exploration and production company
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 three transformational
acquisitions in recent years, including the recent Business Combination with
Eni UK. Today, Ithaca Energy is one of the largest independent oil and gas
companies in the United Kingdom Continental Shelf (the "UKCS"), ranking second
largest independent by production with the largest resource base.

 

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.

 

Ithaca Energy serves today's needs for domestic energy through operating
sustainably. The Group achieves this by harnessing Ithaca Energy's deep
operational expertise and innovative minds to collectively challenge the norm,
continually seeking better ways to meet evolving demands.

 

Ithaca Energy's commitment to delivering attractive and sustainable returns is
supported by a well-defined emissions-reduction strategy with a target of
achieving net zero ahead of targets set out in the North Sea Transition Deal.

 

Ithaca Energy plc was admitted to trading on the London Stock Exchange (LON:
ITH) on 14 November 2022.

-ENDS-

 

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