Ithaca Energy acquires remaining stake in UK North Sea Fotla discovery
Ithaca Energy signed a deal to acquire the remaining stake in the Fotla discovery, bringing the company full control over pre-final investment decision work and timing.
The deal, struck with Spirit Energy Resources Ltd., includes the remaining 40% interest in the UK North Sea discovery in license P2373 plus three exploration licenses (P.213 Area C, P.345 Area A and P.2536), the operator said in a release July 12.
The Fotla discovery, operated by Ithaca Energy, lies in Block 22/1b in 431 ft of water, about 10 km southwest of Ithaca-operated Alba field. The field was discovered in August 2021 by the 22/1b-12 well and subsequently appraised by two side-tracks that also encountered hydrocarbons in the remobilized sands of the Eocene Caran formation, which also form the principal reservoir in Alba oil field, the company said in a fourth-quarter 2021 review (OGJ Online, Apr. 19, 2021).
A conceptual field development plan consists of a subsea tieback to existing infrastructure and is being evaluated. First production from Fotla is targeted for 2026.
While the transaction value was not disclosed, Ithaca said the deal consideration comprises two capped contingent payments divided as two thirds payment on final investment decision and a third on first production.
The deal is subject to satisfaction of certain conditions precedent including regulatory approval.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.