Ithaca Energy Inc. (IAE.TO, IAE.L) announced it has executed a farm-out agreement with a subsidiary of Edison International SpA (EDIHF.PK) for a 25% interest in the licences containing the Handcross prospect and an agreement with Shell UK Limited concerning a licence awarded in the 27th UK Offshore Licensing Round.
Ithaca has entered into an agreement with Euroil Exploration Limited, a wholly owned subsidiary of Edison, to farm-out a 25% interest in UK licences P1631 and P1832, which contain the Handcross prospect. The agreement reduces Ithaca's working interest in the licences from 70% to 45%.
Ithaca has also entered into an agreement with Shell to farm-out 50% of the company's 100% interest in UK licence P2048, covering blocks 29/24, 29/25, 29/29 and 29/30, which was awarded in the UK 27th Offshore Licensing Round. 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 licence, subject to paying its corresponding share of the work programme costs on a future date. Should this option not be exercised, the company's 50% interest in the licence will transfer to Shell, with Ithaca having incurred no costs associated with execution of the committed work programme.
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