As of January 1, 2025, Ithaca Energy will consolidate its presence in the North Sea. North Sea after acquiring an additional 46.25% of the Cygnus gas field, previously held by Spirit Energy. This deal, valued at £116 million (around $154 million), brings the UK company’s stake to 85%.
Effects of participation in Cygnus
Located in the southern North Sea, Cygnus has become a strategic component of the UK’s energy security. With eleven wells on stream since 2016 and three new wells approved, the field spans blocks 44/11a, 44/11b and 44/12a, at depths ranging from 15 to 25 meters.
The operation will increase Ithaca’s 2P reserves by 23 million barrels of oil equivalent and contribute an estimated 12.5 to 13.5 thousand barrels of oil equivalent per day in 2025. This strengthens the balance between the oil and gas assets in its portfolio in its portfolio, and reduces the acquisition price per barrel to less than seven dollars, optimizing shareholder value.
Strategy focused on growth through acquisitions
This agreement is in addition to the recent investment in the Seagull Seagull project (Japex) project and reinforces Ithaca’s policy of expanding in the UK Continental Shelf. UK Continental Shelf through high-quality assets. Yaniv Friedman, executive chairman, said the company sees strong expansion potential with additional drilling planned in upcoming wells.
Operational familiarity with the field and a focus on maximizing its production performance are key for Ithaca Energy. In addition to the increase in reserves, the expanded control allows the company to implement technical and strategic decisions more effectively, reinforcing its role as the second largest independent producer in the region.
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Source and photo: Ithaca Energy
