North Sea operator Ithaca Energy is set to add three more UK assets to its portfolio following a $170million deal with Sumitomo Corporation.
The Japanese trading firm is selling 20% interest in the Cook field, in which Ithaca already has a 41.3% interest; a 7.5% interest in the Pierce field and a 7.4% interest in the Wytch Farm field, all of which are producing but non-operated.
The addition of these assets to Ithaca’s portfolio would increase its proven and probable reserves estimates by 12million barrels of oil equivalent (boe), or 20%.
The company expects production from the fields for the year to amount to 2,500 barrels of oil equivalent per day (boepd).
“I am very pleased to announce the acquisition of these three high quality, long-life assets, which represent an excellent addition to the portfolio,” said Les Thomas, Ithaca Energy’s chief executive.
“The transaction is directly in line with our strategy to further diversify and expand our producing asset portfolio.
“Moreover, each of the assets has clearly defined upsides that provide the opportunity to generate significant additional value.”
The transaction is expected to complete in the third quarter of this year.
