Ithaca Energy farms out UK North Sea prospects

Jan. 25, 2008
Ithaca Energy has brought in North Sea Energy to help it develop the Manuel and Polly prospects and Venture Production to focus on the Carna gas prospect, all of which are in the UK North Sea.

Uchenna Izundu
International Editor

LONDON, Jan. 25 -- Ithaca Energy Inc. has brought in North Sea Energy Inc. to help it develop the Manuel and Polly prospects and Venture Production PLC to focus on the Carna gas prospect, all of which are in the UK North Sea.

Under a farm-in agreement, North Sea Energy will pay 30% of the costs for the Ithaca-operated 12/26c-5 exploratory test, which is being run, to earn a 20% interest in the Polly prospect. The license P1392 is in the Inner Moray Firth area of the North Sea.

North Sea Energy will have the right to drill the Manuel prospect later this year on terms identical to the Polly prospect deal. It also can earn a 20% interest in another portion of license P1392. It has partnered with Ithaca in this area, having earlier farmed in to and earned a 10% interest in the Jacky oil discovery, which Ithaca intends to bring on stream by yearend. Both Polly and Manuel are near the recently announced acquisition by Ithaca of Beatrice oil field, now producing, Ithaca said.

According to Ithaca's farm-in agreement with Venture Production, Venture will become operator and pay 30% of the drilling costs of Carna in this year's second half in return for a 20% interest in parts of Blocks 43/21b and 43/22c. These are in the southern North Sea gas basin.

After the well is drilled, the Carna prospect will be owned 56% by Venture, 40% by Ithaca, and 4% by EWE AG, Ithaca said.

Contact Uchenna Izundu at [email protected].