Ithaca Energy unveils further UK exploration portfolio farm-outs

17th Jun 2013 08:27

AIM-listed North Sea oil and gas exploration, development and production company Ithaca Energy has reported the execution of further UK exploration farm-out transactions. The company has executed a farm-out agreement with a subsidiary of Edison International SpA for a 25% interest in the licences containing the Handcross prospect and an agreement with Shell UK concerning a licence awarded in the 27th UK Offshore Licensing Round.The group said that as a result of the two farm-outs on the Handcross prospect, to Edison and RWE Dea, Ithaca had reduced its share of the forecast cost of the Handcross exploration well to 6%, while retaining a 45% working interest. In line with its stated strategy, the Edison farm-out meant that Ithaca had now substantially mitigated all committed UK exploration expenditure, the group added. Iain McKendrick, Chief Executive Officer of Ithaca Energy, commented: "I am delighted that, not only have the farm-out team delivered very prompt and tangible results from the exploration farm-out effort, but also that we have been joined by such high quality industry partners across our UK exploration assets. "The monetisation of the UK exploration portfolio has far exceeded our expectations in terms of levels of expenditure carry. Ithaca shareholders are now exposed to some potentially high impact exploration at negligible cost".Ithaca Energy's share price was up 1.97% to 116.75p at 08:53 on Monday.MF