Independent producer Ithaca Energy has bought a further 46.25% stake in the Cygnus gas field from Spirit Energy for a purchase price of £116mn, it said in a stock exchange statement May 20. Subject to regulatory approval, Ithaca will own 85% of the field and increase its proven and probable (2P) reserves by 23mn barrels of oil equivalent and its daily output by about 13,000 boe/d this year. Two months ago Ithaca bought a stake in the Seagull field.
The deal works out at less than $7/boe on 2P reserves, which Ithaca said was “good value for equity in a producing field that we know and understand.” Ithaca said it saw the potential for significant upside potential through “further infill drilling beyond the next three approved wells. This is the type of deals we like.”
Read the full press release from Ithaca
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