UK North Sea-focused oil company Ithaca Energy has signed a deal to acquire a 40% stake in the Fotla Discovery it doesn't already own and three offshore exploration licenses from Spirit Energy.
"The acquisition, which is subject to the satisfaction of certain conditions precedent including regulatory approval, and with limited near-term cash outflow, will bring the Group's working interest in the Fotla Discovery to 100% at completion, providing Ithaca Energy with full control over pre-final investment decision work and timing," Ithaca Energy said. The three blocks being acquired from Spriti Energy are P.213 Area C, P.345 Area A and P.2536.
The Fotla Discovery, operated by Ithaca Energy, is located in Block 22/1b of the UK North Sea in 431 ft of water, approximately 10 km southwest of the Ithaca Energy-operated Alba field.
The field was discovered in August 2021 by Ithaca Energy's drilling of the 22/1b-12 well and subsequently appraised by two side-tracks. Ithaca Energy used the WilPhoenix semi-submersible drilling rig, which was owned by Awilco Drilling at the time.
"As previously stated, development plans are currently being evaluated, with first production from the Fotla Discovery targeted in 2026. The conceptual field development plan consists of a subsea tieback to existing infrastructure."
The total transaction consideration comprises two capped contingent payments, which are payable approximately two thirds on final investment decision and a third on first production.
Alan Bruce, Chief Executive Officer of Ithaca Energy, said: "We are pleased to announce the acquisition of the remaining stake in the Fotla Discovery and three additional exploration licenses. The acquisition will provide Ithaca Energy with full control over the pre-final investment decision work program and timing of project sanction as we seek to maximize value from our high-quality investment portfolio."