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Ithaca Energy

Ithaca Energy could come back to London as a much bigger company

Ithaca described the deal as “a material and important step up” for the company which now ranks among the larger independent oil and gas firms in the North Sea.

Ithaca Energy - Ithaca Energy could come back to London as a much bigger company
Ithaca was bought in a US$1.24bn deal, and, last month it acquired US$2bn worth of assets from Chevron

Ithaca Energy is potentially on its way back to London, but, as a much bigger entity as it was before.

Israel conglomerate Delek Group acquired the formerly AIM-quoted group in a deal worth US$1.24bn, or 120p per share.

More recently, Ithaca was the vehicle for a transformational acquisition of Chevron’s North Sea oil and gas portfolio. The US$2bn deal sees Ithaca’s production rise fourfold to 80,000 barrels oil equivalent per day and reserves jump to 225mln barrels.

Ithaca described the deal as “a material and important step up” for the company which now ranks among the larger independent oil and gas firms in the UK continental shelf.

“The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the company as a leading UK North Sea oil and gas producer,” said Les Thomas, Ithaca chief executive.

He added: “We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business.

“With this exciting backdrop, we look forward to contributing to the industry's objective of maximising economic recovery for the UK North Sea over the years to come."

Thomas also commented that whilst Ithaca is considering a return to the London Stock Exchange there was no rush or timescale for the move. The timing would be dependent on a variety of factors, including market conditions.

Should it return, Ithaca will be much larger than when it left back in 2017.

Through the Chevron deal the company picked up stakes - from 6.25% to 85% - in ten fields and has taken almost 500 members of staff.

In a statement, meanwhile, Delek group chief executive Asi Bartfeld said: "With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group's position as a world class E&P business.

“The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets."

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