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Media/Investor Relations
News Release
NOT FOR RELEASE IN THE UNITED STATES OR DISTRIBUTION TO US NEWS SERVICES
ITHACA ENERGY ACQUIRES BEATRICE OILFIELD
LONDON, U.K. - CALGARY, ALBERTA, November 30, 2007 -- Ithaca Energy Inc. (LSE-AIM: IAE, TSX-V: IAE), an independent oil & gas company with exploration and development assets in the UK North Sea, is pleased to announce that through its wholly owned subsidiary Ithaca Energy (UK) Limited, it has entered into an agreement effective from 1st January 2008, to acquire Talisman Energy (UK) Limited’s 100% interest in the Beatrice oilfield on the United Kingdom’s Continental Shelf for a cash consideration of £10 million (US$21 million). The purchase is subject to the usual government and third party consents and due diligence.
Beatrice currently produces approximately 1,800 barrels of oil per day (bopd). Discovered by Mesa Petroleum in 1979, Beatrice has produced more than 165 million barrels of oil to date out of an estimated 495 million barrels in place. Talisman retains the obligation for decommissioning. Wood Group Engineering (North Sea) will be appointed as Duty Holder and operator, an extension of their current role as engineering contractor.
The acquisition of the Beatrice field provides Ithaca with its first oil production and control of the producing infrastructure in the area. The Inner Moray Firth area became a core area with the successful drilling of the 90% owned Jacky oil discovery in May of this year, Ithaca owns a 100% interest in a 114,500 acre license surrounding the Beatrice field on which the Company has identified several exploration prospects the first of which will be drilled before year end.
Included in the transaction are the offshore facilities of three platforms, Alpha, Bravo and Charlie, operatorship of the Nigg onshore storage and transshipment terminal and a 16 inch diameter pipeline from the Alpha platform to the Nigg facility. The pipeline was substantially replaced in 2001 and has the capacity for over 60,000 barrels per day. The Bravo platform is currently shut-in and it is Ithaca’s intention to resume operations during the process of connecting Jacky to the Alpha platform. Bravo was producing approximately 800 bopd prior to being shut-in.
Final Transaction Agreements are expected to be signed by January 31, 2008 with complete transfer of the interests by June 30, 2008.
Lawrie Payne, CEO of Ithaca commented:
"This acquisition not only establishes Ithaca as a producer, but has major strategic value to the Company. The purchase of Beatrice brings immediate production of approximately 1,800 bopd, the opportunity to increase production by restoring production from the Bravo platform, the opportunity to tie-in our Jacky discovery and to provide processing facilities for any future discoveries in the area".
There will be a conference call for research analysts at 3:00 PM London time, Friday November 30, 2007. Please contact Sally Daley at Pelham PR on +44 (0)20 3178 2251 or via email sally.daley@pelhampr.com for dial-in details.
Not for Distribution to U.S. Newswire Services or for Dissemination in the United States
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters. When used in this announcement, the words "expects", "believes", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. These forward-looking statements speak only as of the date of this announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and CEO of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.
Enquiries:
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Ithaca Energy Inc:
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Office: |
Mobile |
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Lawrie Payne |
In London:
+44(0) 20 7590 3027 |
+44(0)7841 678668 |
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Brad Gunn |
In London:
+44(0) 20 7590 3026 |
+44(0)7920 019355 |
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In Calgary:
+1 (403) 668 9599 |
+1 (403) 389 4107 |
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Nabarro Wells & Co. Limited |
Office: |
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Marc Cramsie |
+44(0) 20 7710 7400 |
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| John Wilkes
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+44(0) 20 7710 7400 |
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Pelham Public Relations |
Office: |
Mobile |
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Charles Vivian |
+44(0) 20 7743 6673 |
+44(0)7977297903 |
| Philip Dennis
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+44(0) 20 7743 6363 |
+44(0)7947868206 |
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