Ithaca Energy has entered into an agreement to sell its wholly owned subsidiary, Ithaca Petroleum Norge (Ithaca Norge), for an initial consideration of USD 60M. The company also has the ability to earn additional bonus payments of up to USD 30M dependent on exploration success from the existing licence portfolio. Ithaca Norge will be acquired by MOL Nordsjon, a wholly owned subsidiary of the Hungarian listed company MOL. The transaction is expected to complete in the third quarter of 2015.
Upon completion, the transaction will conclude Ithaca’s successful restructuring and monetisation of the Norwegian operations acquired as part of the acquisition of Valiant Petroleum in April 2013.
Les Thomas, CEO, commented: “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.”
