Ithaca Farms Out North Sea Interests

North Sea-focused Ithaca Energy reported Monday that it has executed farm-out agreements with Edison International and Shell UK as part of a strategy to reduce its committed UK exploration expenditure.

The deal with Edison International sees Ithaca farm out a 25-pecent interest in UK licenses P1631 and P1832, which cover the Handcross prospect. Ithaca’s working interest in Handcross now falls to 45 percent, while it share of the forecast costs of the Handcross exploration well fall to six percent while the firm retains operatorship.

Ithaca CEO Iain McKendrick commented in a company statement:

"I am delighted that, not only have the farm-out team delivered very prompt and tangible results from the exploration farm-out effort, but also that we have been joined by such high quality industry partners across our UK exploration assets. The monetisation of the UK exploration portfolio has far exceeded our expectations in terms of levels of expenditure carry.  Ithaca shareholders are now exposed to some potentially high impact exploration at negligible cost."

The deal with Shell concerns the farming out of 50 percent of Ithaca's 100-percent interest in UK license P2047, which was awarded in the UK's 27th Offshore Licensing Round. The agreement provides for Shell to pay the full cost of obtaining the seismic data.

 



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Buru Energy Hits Oil at Praslin 1 Well (Aug 28)
 -  IOG Gets 3-Month Skipper License Exten... (Aug 28)
 -  UIL Energy to Acquire Perth Basin 2D S... (Aug 28)
 -  Galilee Completes Acquisition of ATP 5... (Aug 27)
 -  NPD Grants Statoil Drilling Permit in ... (Aug 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Sr. Project Manager - Pipeline Construction
Expertise: Asset Integrity Engineer|Project Management|Risk Management
Location: Houston, TX
 
West Coast Account Manager
Expertise: Business Development|Sales & Marketing
Location: Seattle, WA
 
Geotechnical Engineering Manager
Expertise: Geotechnical Engineer
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $50.05/BBL 5.23%
Light Crude Oil : $45.22/BBL 6.25%
Natural Gas : $2.72/MMBtu 3.42%
Updated in last 24 hours