Ithaca Energy to increase ownership in Fotla discovery to 100%

Ithaca Energy announced that it has signed a Sale and Purchase Agreement to acquire the remaining 40% stake in the Fotla discovery and three exploration licenses (P.213 Area C, P.345 Area A and P.2536) from Spirit Energy Resources Limited.

This acquisition, subject to regulatory approval and other conditions, will increase Ithaca Energy’s stake in the Fotla discovery to 100%, thus allowing it full control over the pre-final investment decision work and timing.

The Fotla discovery, which is operated by Ithaca Energy, is situated in Block 22/1b of the UK North Sea, 10km southwest of the Ithaca-operated Alba field. The field was initially discovered in August 2021 when the company drilled the 22/1b-12 well. It has since been appraised by two side-tracks. Current development plans for Fotla Discovery are being evaluated, with initial production projected for 2026. The proposed development plan involves a subsea tieback to existing infrastructure.

The total cost of the transaction is composed of two capped contingent payments, which are due approximately two-thirds at the time of the final investment decision and the remaining third upon first production.

Ithaca Energy’s Chief Executive Officer, Alan Bruce, commented on the acquisition, saying, “We are pleased to announce the acquisition of the remaining stake in the Fotla Discovery and three additional exploration licenses. The acquisition will provide Ithaca Energy with full control over the pre-final investment decision work programme and timing of project sanction as we seek to maximise value from our high-quality investment portfolio.”