Ithaca Energy Plc. (ITH.L), an exploration and production company, Tuesday announced that it has signed a sale and purchase agreement to acquire the issued share capital of JAPEX UK E&P Ltd. or JUK from Japan Petroleum Exploration Co. Ltd. (JPTXF) for $193 million. The deal is expected to raise the company's 50 percent stake in the Seagull field.
The transaction aligns with Ithaca Energy's strategy to grow through acquisitions in the UK Continental Shelf market.
The final purchase price will be expected to be around $140 million with an estimated close by June 30.
JUK owns a 15% stake in the Seagull oil field in the UK North Sea. Once approved, this purchase will raise Ithaca Energy's stake in Seagull from 35 to 50 percent, matching bp's share as the field operator.
The deal is expected to add 7 mmboe of 2P reserves as of Jan 1 and boost 2025 production by 4 to 4.5 kboe/d, of approximately 82% liquids with the remainder gas.
The deal values JUK at around $10/boe, excluding tax benefits.
The Seagull oil field in the UK Central North Sea has several fields which started producing in November 2023. Three wells are working, and a fourth will start in late 2025 and is expected to keep producing until the mid-2030s.
Ithaca Energy is currently trading 1.17% higher at 138.60 pence on the London Stock Exchange.
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