Endeavour offers to buy Ithaca Energy
Endeavour International Corp. has offered to buy Ithaca Energy Inc. for as much as $150 million in cash and shares to bolster its North Sea assets.
LONDON, June 20 -- Endeavour International Corp. has offered to buy Ithaca Energy Inc. for as much as $150 million in cash and shares to bolster its North Sea assets.
The company sent a nonbinding letter to the Ithaca Energy board, setting out its proposal, which represents a premium of 44.2% on Ithaca's closing price on June 18. Endeavour, which already holds a 2.4% of Ithaca's current issued share capital, has offered an indicative price of $3.25/Ithaca share.
William Transier, Endeavour's president and chief executive, said: "Our two companies have similar strategic focus on the upstream business in the North Sea. With Endeavour's current cash flow and growing production profile, the risk of timely execution of Ithaca's development projects is reduced, and the ability to realize total value for shareholders is significantly increased."
Ithaca said it would review the unsolicited offer in light of its long-term strategic plan. It has interests in 30 blocks or partial blocks under 16 licenses covering more than 514,000 acres.
Endeavour estimates that its production in 2008 will average 8,600-9,000 boe/d. It plans to drill and appraise 15 North Sea exploration and appraisal wells later in 2008 and 2009.
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