Dyas raises interest in North Sea assets

Dyas UK Ltd. agreed to increase its interest in Ithaca Energy Inc.’s UK North Sea assets in a $35.8 million deal.

July 7, 2009

Uchenna Izundu
OGJ International Editor

LONDON, July 7 -- Dyas UK Ltd. agreed to increase its interest in Ithaca Energy Inc.’s UK North Sea assets in a $35.8 million deal.

Dyas will acquire 11.6 million boe of developed and undeveloped acreage at a price of $8.36/boe, said Ithaca.

Dyas converted a $61.2 million loan granted to Ithaca in November into the purchase of an additional 15.15% in all of Ithaca’s interests held Nov. 1, 2008. Dyas will become a shareholder in the Jacky and Beatrice fields, and the Athena, Carna, and Stella developments. It still holds 15.15% interest granted under last year’s option.

Ithaca said the arrangement would free it of debt, and it would receive an additional cash payment from Dyas of $35.8 million, which it would use to boost production from Jacky and Beatrice, and appraise Stella.

In Athena, Dyas will hold 47.50%; in Beatrice it will be 50%; in Carna, 24%; in Jacky, 42.5%; and in Stella, 31.67%.

The transaction is subject to approval of the UK Department for Environment and Climate Change, Talisman Energy, and other parties.

Contact Uchenna Izundu at [email protected].