Ithaca Energy sells UK license stakes to Edison, Shell


Ithaca Energy sells UK license stakes to Edison, Shell


LONDON -- Ithaca Energy said it has agreed to sell Edison International a 25% interest in the licenses containing the Handcross prospect, and has also signed an agreement with Shell, selling it a 50% stake in United Kingdom license P2048.

Ithaca has sold Edison a 25% interest in United Kingdom licenses P1631 and P1832 (blocks 204/14c, 204/18 billion and 204/19c), which contain the Handcross prospect.

This agreement reduces Ithaca's working interest in the licenses from 70% to 45%.

Ithaca retains operatorship of the licenses.

In return for the 25% interest, Edison will carry a portion of Ithaca's share of the costs of an exploration well on the Handcross prospect. A well is to be drilled on the prospect using the Stena Carron drillship, with operations anticipated to commence in late 2013.

Edison, now part of the Electricite de France, has about 3,200 employees in more than 10 Countries across Europe, Africa and the Middle East, with activities ranging from exploration and production of crude oil and natural gas to the production and sales of electric power and the marketing of natural gas.

Ithaca has also entered into an agreement with Shell to sell a 50% of the Company's 100% interest in United Kingdom license P2048, covering blocks 29/24, 29/25, 29/29 and 29/30, which was awarded in the United Kingdom 27th Offshore Licensing Round.

The firm license work program commitment is to obtain 500 sq km of three dimensional seismic data. The agreement provides for Shell to pay the full cost of obtaining the seismic data.

Ithaca has the option to retain its 50% interest in the license, subject to paying its corresponding share of the work program costs on a future date.

Should this option not be exercised, the Company's 50% interest in the license will transfer to Shell, with Ithaca having incurred no costs associated with execution of the committed work program.

Dow Jones Newswires

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