Ithaca agrees to UK farm-outs with Shell, Edison

Offshore staff

CALGARY, Canada – Ithaca Energy has negotiated farm-outs involving three of its UK offshore licenses.

Assuming approvals, Euroil Exploration, a subsidiary of Italy’s Edison, will acquire a 25% interest in licenses P1631 and P1832 (blocks 204/14c, 204/18b and 204/19c), including the Handcross prospect. Ithaca will retain a 45% operating stake in both concessions.

In exchange, Edison will part-carry Ithaca’s share of the costs of an exploration well, which the drillship Stena Carron is due to spud late this year on Handcross, a Palaeocene prospect in the Judd basin west of Shetland. Other partners are RWE Dea (20%) and Sussex Energy (10%).

Under the UK’s 27th licensing round, Ithaca was awarded 100% of P2048, spanning blocks 29/24, 29/25, 29/29, and 29/30. The firm work program includes acquiring 500 sq km (193 sq mi) of 3D seismic data.

Shell has agreed to finance this campaign in exchange for 50% of the license.  Ithaca will retain its 50% interest, assuming it pays its share of the future work program costs. If it decides not to exercise that option, Shell will take full control of the license.

6/17/2013

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...