North Sea operator raises its stake in UK gas field

October 1, 2025, by Melisa Cavcic

Ithaca Energy, a North Sea oil and gas operator and producer, has completed its acquisition of an additional stake in a gas field on the UK Continental Shelf (UKCS).

Cygnus Alpha; Source: Neptune Energy, which became part of Eni's UK portfolio now managed by Ithaca

After pricing its offering of an aggregate principal amount of €450 million of 5.5% senior notes due 2031 at par, with interest payable semi-annually, with the gross proceeds from the notes offering to be used to pay the purchase price of the Cygnus acquisition, Ithaca has closed the addition of an additional 46.25% interest in the Cygnus gas field from Spirit Energy, with all conditions precedent satisfied.

Yaniv Friedman, Ithaca’s Executive Chairman, commented: “We’re very pleased to complete the transaction with our partner Spirit Energy and further execute on the Group’s strategy to pursue value-accretive M&A, adding high-quality assets in our core UKCS market.

“This acquisition, and the completed deal with Japex, strengthens the group’s position as a lead consolidator in the UKCS, adding incremental reserves and production via highly attractive opportunities that meet our strict investment criteria.”

The increase brings the company’s operated interest in the field to 85%, with Spirit Energy retaining 15%, following a payment of approximately £115 million upon completion of the transaction, based on an effective date for the transaction of January 1, 2025, and after customary purchase price adjustments.

Described as the largest UK Continental Shelf gas field and a key contributor to the UK’s energy security, the Cygnus field came online in 2016 and hosts two platforms: Cygnus Alpha and Cygnus Bravo. The first consists of three bridge-linked platforms, and the second is an unmanned satellite platform.

This acquisition adds 23 mmboe of 2P reserves and 2025 pro forma production between 12.5 – 13.5 kboe/d, enhancing the balanced production mix of the firm’s portfolio through additional gas volumes, adding high-quality assets in its core UK Continental Shelf market, which is in line with the company’s strategy to pursue further consolidation in the basin.

“The success of the group’s M&A activity in 2025 and improved organic efficiency and production means we expect to exit the year with a production rate of approximately 140 kboe/d, positioning Ithaca Energy as one of the largest producers in the UKCS basin, providing a platform for material cash generation and growth,” highlighted Friedman.