Ithaca Energy buys non operated interests in Cook MacCulloch for $38.5 million

10/9/2012

Ithaca Energy buys non operated interests in Cook MacCulloch for $38.5 million

BY RAZAK MUSAH BABA

LONDON -- Ithaca Energy, said that it has entered into agreements with Noble Energy to acquire two subsidiary companies that will hold non operated interests in United Kingdom North Sea producing fields; a 12.885% interest in the Cook field and a 14% interest in the MacCulloch field.

The total consideration is $38.5 million, implying an acquisition cost of $11.3 per barrel of proven and probable reserves.

Completion of the transactions is anticipated in early 2013 and is subject to normal regulatory and joint venture approvals, including reaching agreement in respect of decommissioning cost security. The acquisition will be funded from Ithaca's existing cash resources.

The acquisitions are forecast to result in net incremental production, predominantly oil, for the Company of 1,100 boepd in 2012. The two fields are anticipated to increase the Company's net proven and probable reserves by 3.4 mmboe, based on the effective date of the transactions of January 1.

The acquisition will result in the Company increasing its existing Cook field interest to 41.345% from 28.46%. Net production from the two fields is anticipated to average 1,100 boepd over 2012, with the contribution from each field being broadly equal.

Dow Jones Newswires

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