Ithaca to Buy Valiant for $309 Mln
Ithaca Energy today announced it has reached agreement under which it will acquire Valiant Petroleum for £203 million (equivalent to approximately US$309 million)
The Acquisition is anticipated to result in the establishment of Ithaca as a leading mid cap North Sea oil and gas operator, with 2P reserves of approximately 74MMboe(1), of which approximately 50% relates to currently producing assets; a more than doubling of Ithaca’s current forecast 2013 production to 14-16kboe/d (90% oil), rising to approximately 27kboe/d in 2015; and approximately a four fold increase in Ithaca’s anticipated 2013 cash flow from operations to US$400 million, rising to over US$700 million in 2015.
Valiant has a balanced portfolio of production, development and exploration assets with a primary focus on the UK and Norway. Formed in 2004, Valiant has developed a stable production foundation providing it with sustained cash flows which fund on-going investment. Valiant has built a broad and attractive portfolio in stable geographies where it has deep knowledge of the geology and regulatory environment.
Commenting on the acquisition, Jack Lee, Non-Executive Chairman of Ithaca said: ” This proposed acquisition represents a significant step forward in the execution of Ithaca’s strategy to build a highly profitable 25kboe/d North Sea oil and gas company. The combined assets of the two groups have a strong strategic fit, with the acquisition materially increasing and broadening Ithaca’s producing asset base and reserves portfolio.”
“The highly cash generative nature of the enlarged portfolio and further enhancement of Ithaca’s existing financial strength provides an exciting springboard from which to continue driving forward the Business and accelerating value from Ithaca’s production and development-led growth strategy.”
Kevin Lyon, Non-Executive Chairman of Valiant said:
“We are pleased to announce Ithaca’s recommended offer to our shareholders. The Board feels the offer recognises the value in Valiant’s portfolio and provides our shareholders with the opportunity to both realise a proportion of this value in cash today whilst retaining exposure to the enlarged portfolio. The combination with Ithaca will create a leading North Sea oil and gas operator with a diverse production and reserves asset base from which to pursue new and exciting growth opportunities.”
March 1, 2013