24th Apr 2015 08:17
LONDON (Alliance News) - Ithaca Energy Inc on Friday said it has reached an agreement to sell its Ithaca Petroleum Norge AS subsidiary in Norway to MOL Nordsjon, a subsidiary of Hungary's MOL PLC.
Ithaca said it will sell the business for an initial consideration of USD60 million, with the potential to earn a further USD30 million dependent on exploration success from the existing licences in the Norwegian subsidiary's portfolio.
The deal is expected to complete in the third quarter of 2015.
"The team has done an excellent job in restructuring the Norwegian business following its acquisition as part of the Valiant transaction in 2013. The sale provides Ithaca with the right opportunity to now monetise the value of this non-core part of the company while retaining upside exposure to the anticipated drilling programme over the next two years," said Les Thomas, chief executive of Ithaca.
Shares in Ithaca were up 4.4% to 51.67 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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