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.


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