Ithaca Energy to Sell Entire Interest in PL089, P534, PEDL 328
Ithaca Energy Inc. has agreed to sell its entire interest in licenses PL089, P534 and PEDL 328, which contain the onshore Wytch Farm field, to Verus Petroleum SNS Limited for a cash consideration of $53 million.
The transaction releases the company from a $16 million letter of credit posting in relation to future Wytch Farm decommissioning liabilities. The proceeds of the transaction will be used to partly repay Ithaca’s existing bank debt facilities, according to a company statement.
The effective date of the transaction is July 1, 2017, with the final consideration paid being subject to customary financial adjustments to reflect income and costs incurred since that date. Completion of the transaction, which is anticipated around mid-2018, is subject to conventional partner and regulatory approvals.
Average Wytch Farm production in 2017 was approximately 1,000 barrels of oil per day net to Ithaca. As of December 31, 2016, the company’s proven and probable reserves associated with the licenses was 4.8 million barrels of oil equivalent, including reserves attributable to the Wareham Field and Beacon discovery.
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