UK-based Ithaca Power has signed a sale and buy settlement to amass the entire issued share capital of JAPEX UK (JUK) E&P from Japan Petroleum Exploration.
The transaction, carrying an $193m (£149.5m) enterprise worth based mostly on an efficient date of 1 January 2024, is ready to reinforce Ithaca Power’s working curiosity within the Seagull oilfield within the UK North Sea from 35% to 50%.
This stake improve will match bp’s curiosity as the sphere operator.
The acquisition is topic to regulatory approval and different situations.
It’s anticipated so as to add seven million barrels of oil equal (mboe) of 2P (confirmed) reserves as of 1 January 2025 and increase manufacturing by roughly 4,000–4,500 barrels of oil equal per day in 2025.
The manufacturing composition might be round 82% liquids, with the rest being gasoline.
In response to Ithaca Power, this deal is in keeping with its technique of pursuing value-enhancing mergers and acquisitions, aimed toward incorporating “high-quality” belongings inside its main UK Continental Shelf (UKCS) market.
The deal consideration is topic to buy value changes, with an estimated fee at completion of round $140m, based mostly on a projected 30 June 2025 cut-off date.
It additionally contains JUK’s materials tax losses of round $215m in each Ring Fence Company Tax and Supplementary Cost Tax, plus roughly $105m of Power Revenue Levy losses as of the efficient date of 1 January 2024.
Ithaca Power government chairman Yaniv Friedman mentioned: “At the moment’s announcement relating to the acquisition of JUK exhibits Ithaca Power’s development technique in motion with a extremely accretive, simply digestible and synergistic deal that may add incremental manufacturing for the Group, in a well-understood, high-value subject.”
The Seagull oilfield, located within the UK central North Sea, is estimated to include reserves of greater than 300mboe.
Claimed to be a high-margin producing subject, Seagull is developed as a subsea tie-back to a bp-operated central processing facility on the Japanese Trough Space Venture.
Manufacturing commenced in November 2023 from the J1 effectively, with J2 and J3 wells additionally now on-line.
The fourth effectively, J4, is predicted to start out manufacturing within the second half of 2025.
The sphere is projected to stay operational till the mid-2030s.
“Ithaca Power to amass JAPEX UK E&P from Japan Petroleum Exploration” was initially created and revealed by Offshore Expertise, a GlobalData owned model.
The data on this web site has been included in good religion for normal informational functions solely. It’s not supposed to quantity to recommendation on which you need to rely, and we give no illustration, guarantee or assure, whether or not specific or implied as to its accuracy or completeness. You need to get hold of skilled or specialist recommendation earlier than taking, or refraining from, any motion on the idea of the content material on our web site.
UK-based Ithaca Power has signed a sale and buy settlement to amass the entire issued share capital of JAPEX UK (JUK) E&P from Japan Petroleum Exploration.
The transaction, carrying an $193m (£149.5m) enterprise worth based mostly on an efficient date of 1 January 2024, is ready to reinforce Ithaca Power’s working curiosity within the Seagull oilfield within the UK North Sea from 35% to 50%.
This stake improve will match bp’s curiosity as the sphere operator.
The acquisition is topic to regulatory approval and different situations.
It’s anticipated so as to add seven million barrels of oil equal (mboe) of 2P (confirmed) reserves as of 1 January 2025 and increase manufacturing by roughly 4,000–4,500 barrels of oil equal per day in 2025.
The manufacturing composition might be round 82% liquids, with the rest being gasoline.
In response to Ithaca Power, this deal is in keeping with its technique of pursuing value-enhancing mergers and acquisitions, aimed toward incorporating “high-quality” belongings inside its main UK Continental Shelf (UKCS) market.
The deal consideration is topic to buy value changes, with an estimated fee at completion of round $140m, based mostly on a projected 30 June 2025 cut-off date.
It additionally contains JUK’s materials tax losses of round $215m in each Ring Fence Company Tax and Supplementary Cost Tax, plus roughly $105m of Power Revenue Levy losses as of the efficient date of 1 January 2024.
Ithaca Power government chairman Yaniv Friedman mentioned: “At the moment’s announcement relating to the acquisition of JUK exhibits Ithaca Power’s development technique in motion with a extremely accretive, simply digestible and synergistic deal that may add incremental manufacturing for the Group, in a well-understood, high-value subject.”
The Seagull oilfield, located within the UK central North Sea, is estimated to include reserves of greater than 300mboe.
Claimed to be a high-margin producing subject, Seagull is developed as a subsea tie-back to a bp-operated central processing facility on the Japanese Trough Space Venture.
Manufacturing commenced in November 2023 from the J1 effectively, with J2 and J3 wells additionally now on-line.
The fourth effectively, J4, is predicted to start out manufacturing within the second half of 2025.
The sphere is projected to stay operational till the mid-2030s.
“Ithaca Power to amass JAPEX UK E&P from Japan Petroleum Exploration” was initially created and revealed by Offshore Expertise, a GlobalData owned model.
The data on this web site has been included in good religion for normal informational functions solely. It’s not supposed to quantity to recommendation on which you need to rely, and we give no illustration, guarantee or assure, whether or not specific or implied as to its accuracy or completeness. You need to get hold of skilled or specialist recommendation earlier than taking, or refraining from, any motion on the idea of the content material on our web site.
