Ithaca Energy Completes Acquisition of JAPEX UK E&P Limited
Why we think this is good
The acquisition of JAPEX UK E&P Limited is a positive development for Ithaca Energy, as it increases the company's working interest in the high-value Seagull field and adds significant production and cash flow. While the financial details are not fully quantified, the transaction is described as 'highly accretive', suggesting favorable margins and earnings impact. The successful completion of the acquisition on the estimated timeline also demonstrates Ithaca Energy's strong execution capabilities.
Key Points
- Ithaca Energy has completed the acquisition of JAPEX UK E&P Limited
- The acquisition increases Ithaca Energy's working interest in the Seagull field from 35% to 50%
- The transaction consideration is US$193 million, with a final completion payment of approximately US$136 million
- The acquisition will add pro forma 2025 production of approximately 4 - 4.5 kboe/d
- The acquisition is described as 'highly accretive' for Ithaca Energy
Summary
Ithaca Energy has completed the acquisition of the entire issued share capital of JAPEX UK E&P Limited, increasing its working interest in the Seagull field from 35% to 50%. The transaction consideration of US$193 million (based on an effective date of 1 January 2024) will add pro forma 2025 production of approximately 4 - 4.5 kboe/d. The acquisition is described as 'highly accretive', demonstrating Ithaca Energy's continued delivery of its low-risk inorganic growth strategy.