Ithaca to Enter '09 with Strong Cash Position; First Oil from Jacky in 1Q
Ithaca has completed a major tranche of its transaction with Dyas UK Limited ahead of the planned date. Dyas is a wholly owned subsidiary of SHV, the largest privately owned conglomerate in the Netherlands.
On October 30, 2008 the Company announced that Dyas had agreed to purchase 25.25% of Ithaca's interests in all assets then owned by the Company for the consideration of Pounds Sterling 40 million (approximately US $60 million) cash effective November 1, 2008. As it was important that these funds be available to Ithaca prior to
closing in order to enable it to maintain its capital program, Dyas facilitated this by advancing the consideration amount to Ithaca as a loan until closing of the transaction.
Ithaca and Dyas have brought about an early completion on the majority of the assets and this has involved the
transfer of Pounds Sterling 35 million (approximately US $52.5) of the Pounds Sterling 40 million consideration
to Ithaca's account. The remaining Pounds Sterling 5 million (approximately US $7.5 million) shall stand as a
loan to Ithaca until the second phase of the transaction is completed and this is anticipated in early 2009.
Taking into account all working capital adjustments, Ithaca will receive a total payment of approximately Pounds Sterling 38.5 million (US $57.75 million). By entering this sale of assets to Dyas, Ithaca will start 2009 in a strong cash position and with manageable cost exposure.
All other aspects of the agreement and transaction between Ithaca and Dyas remain in place as previously
Iain McKendrick, CEO of Ithaca said, "The early completion of a very significant part of this strategic transaction enables the Company to fully integrate Dyas as its partner in most of the assets concerned. In the near term, the two companies will work together on projects including the Beatrice oilfield, the Jacky development and a Well planned on the Carna exploration prospect in the southern gas basin of the North Sea. We are also already well advanced in completing the second phase of the Dyas transaction in early 2009.
"Ithaca will enter 2009 in a strong cash position and we continue to expect additional production from Beatrice,
augmented by the reinstatement of production from the Bravo platform, and first oil from Jacky by the end of Q1
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