Ithaca completes acquisition of Sumitomo’s UK oil fields

Ithaca Energy Inc. has now completed the acquisition of the three UK producing oil field interests from Sumitomo Corporation.

Ithaca has acquired Summit Petroleum Limited (“SPL”), a subsidiary company of Sumitomo, which holds the Cook (20.00%), Pierce (7.48%) and Wytch Farm (7.43%) field interests that have been acquired.

The net consideration paid at completion was $163 million, taking into account working capital and net cashflows since the transaction effective date of 1 January 2014.

The reserves associated with the acquired field interests of approximately 12.0MMboe, over 90% oil, have been estimated by Ithaca. The reserves will be independently assessed by Sproule International Limited as part of the normal year end reserves evaluation exercise.
In total the acquired assets produced approximately 2,500 boepd in 2013, approximately 92% oil.

This includes the impact of a planned shut-in of the Pierce field for approximately seven months of 2013 in order for the “Haewene Brim” floating production, storage and offloading vessel (“FPSO”) that is used on the field to be transferred to dry dock for modification and refurbishment works to enable the tie-in of a third party field to the FPSO in 2014. The vessel returned to the field in late 2013 and production is forecast to resume from the Pierce field in the third quarter of 2014.