Ithaca snaps up stakes in North Sea gas fields in £24m double swoop

Ithaca Energy is buying stakes in two North Sea oil fields as it hits the acquisition trail with a new debt facility behind it.

The oil and gas producer, which is listed on the Canadian and London stock exchanges, said yesterday that it would buy Noble Energy’s interests in the Cook and MacCulloch fields for $38.5 million (£24m).

The 12.9 per cent stake in Cook and 14 per cent share of MacCulloch will add about 1,100 barrels of oil equivalent per day to Ithaca’s production.

Chief executive Iain McKendrick said the move was in line with the firm’s objective of acquiring producing reserves in the UK continental shelf to both diversify its production base and allow it to maximise tax allowances it has built up.

“I am particularly pleased to be acquiring the interests in these fields, where we see large potential production and reserve upsides,” he added.

He said the fields were “quick pay-back additions” to Ithaca’s growing production base, and the company was “cautiously optimistic” of being able to add further assets to its portfolio soon.

The deal will be financed from the firm’s cash resources, but comes shortly after Ithaca secured an extended $380m debt facility.

James Hosie, an analyst at RBC Capital Markets, reiterated his “outperform” rating on Ithaca following the announcement.

He said: “The deal helps further diversify the production base and accelerate the use of tax losses, and we believe it could lead to further opportunities to add North Sea reserves and production.”