23rd Sep 2013 10:45
LONDON (Alliance News) - Ithaca Energy Inc Monday said its now cashflow positive after completing further farm-out deals.
The oil and gas development company with operations in the North Sea, said it completed a farm-out deal with Oyster Petroleum Limited for a 9% working interest and Sussex Energy for a 5% working interest in the UK licences on its Handcross prospect. Ithaca retained a fully carried 31% interest in the sites, meaning it's still the operator.
In addition, the company completed a farm out deal with Euroil Exploration Limited, a subsidiary of Edison SpA for a 10% working interest in the UK licences on its Isabella prospect, leaving Ithaca with a 10% non-operated working interest in the site.
The company recently said it would do multiple farm-outs to help pay off a significant exploration cost of USD85 million transferred to it in a deal with Valiant PLC.
Ithaca said it has not only offset the exploration costs but gained over USD8 million in cash payments thanks to the farm-out deals.
"The company has successfully executed upon its key post-acquisition objective of removing its UK exploration cost exposure whilst still retaining potential upside," Chief Executive Iain McKendrick said in a statement.
Ithaca shares were up 1.1% to 152.59 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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