Ithaca Energy (LSE:ITH) has agreed to acquire a portfolio of conventional offshore oil assets from Suncor Energy for $860 million in upfront cash, expanding the company’s operations beyond the UK into Offshore East Coast Canada.
The transaction also includes contingent consideration of up to $250 million.
The portfolio comprises a 48% operated interest in the Terra Nova field and non-operated interests in the White Rose fields, located in shallow waters offshore Newfoundland and Labrador.
Ithaca said the acquisition will add an estimated 103 million barrels of oil equivalent of proved and probable, or 2P, reserves.
The acquired assets are expected to contribute average production of approximately 30,000 barrels of oil equivalent per day between 2027 and 2031. Production is expected to reach a peak of up to 40,000 boe/d in 2029.
Based on the addition of the Canadian portfolio, Ithaca expects its medium-term group production to reach between 140,000 and 150,000 boe/d.
Management expects the transaction to be immediately accretive to the company’s cash flow and dividends. These remain company expectations and will depend on the future financial and operating performance of the acquired assets.
Ithaca Expands Beyond UK Offshore Market
The acquisition marks Ithaca’s expansion into Offshore East Coast Canada after historically concentrating its operations on the United Kingdom Continental Shelf.
The company said the transaction would make it the fifth-largest operator offshore Canada and provide a platform from which it could pursue further acquisitions and organic development opportunities in North America.
The portfolio includes operated and non-operated interests in producing conventional offshore assets and increases the geographical diversification of Ithaca’s production and reserves.
More about Ithaca Energy
Ithaca Energy PLC is an oil and gas exploration and production company focused on conventional offshore resources.
The company has historically concentrated its portfolio on the United Kingdom Continental Shelf, where it operates and holds interests in offshore fields.
Its portfolio includes shallow-water assets and developments using floating production, storage and offloading infrastructure.
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