Ithaca Energy completes acquisition of interests in three UK Producing Oil Fields

Ithaca Energy Inc. has completed the acquisition of the three UK producing oil field interests from Sumitomo Corporation.

Ithaca has acquired Summit Petroleum Limited, a subsidiary company of Sumitomo, which holds:

• A 20% interest in the Shell-operated Cook field in which Ithaca already has a 41.346% interest;
• A 7.48% interest in the Shell-operated Pierce oil field; and,
• A 7.43% interest in the Perenco-operated Wytch Farm oil field.

The firm has increased in net proved and probable (2P) reserves of approximately 12.0 million barrels of oil equivalent (MMboe), equating to an uplift in total company 2P reserves of approximately 20%. In total the acquired assets produced approximately 2,500 boepd in 2013, approximately 92% oil. The acquisition is forecast to increase the company’s 2014 production guidance by approximately 2,500 boepd.

The net consideration paid at completion was US$163 million. The effective date of the acquisition is 1 January 2014.

The Cook oil field, operated by Shell, lies in the Central North Sea area of the UK Continental Shelf (UKCS), approximately 175 kilometres east of Aberdeen. The field has been developed as a single well subsea tie-back to the Shell-operated Anasuria FPSO, which serves as a host processing facility to two other nearby fields, with oil exported from the FPSO via shuttle tankers and gas via pipeline to shore.

The Pierce field, operated by Shell, is located in the Central North Sea area of the UKCS, approximately 280 kilometres east of Aberdeen. The field was discovered in 1975, with first oil achieved in February 1999. The field is developed by subsea wells tied into the Haewene Brim FPSO, with oil export directly to market via shuttle tankers.

The Wytch Farm field, operated by Perenco UK Limited, is located in offshore blocks and onshore blocks in Dorset, England. Both the onshore and offshore wells on the field have been drilled from twelve onshore pads (drill centres) located alongside the on-site oil processing facilities; with sixty-four production wells and 31 water injection wells currently in operation. Oil is exported from the field via pipeline directly to the BP-operated Hamble terminal.