Oil and gas operator Ithaca Energy splashed out $170 million as it moved to significantly increase its presence in the North Sea.
Shares in the AIM-listed firm edged ahead in early Monday trading after it revealed a deal with Japan’s Sumitomo Corporation that has upped its existing 41.3% stake in the Cook field by a further 20%.
The firm also said it taken a 7.48% interest in the Shell-operated Pierce field and a 7.43% stake in Perenco’s Wytch Farm prospect.
The investments increase Ithaca’s overall proved and probable reserves by approximately 12m barrels of oil, an uplift of around 20% on previous levels.
The firm said the deal had been completed at an approximate cost of $14.2 per barrel, but that figure fell to roughly $12 once the company’s existing tax allowances pool was taken into account.
Ithaca said the new reserves, which it expects will produce 2,500 barrels per day, would now be independently assessed by Sproule International as part of the normal year end reserves evaluation exercise.
Ithaca chief executive officer Les Thomas said the trio of new fields would be earnings enhancing.
“I am very pleased to announce the acquisition of these three high quality, long-life assets, which represent an excellent addition to the portfolio,” Mr Thomas said.
“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.”