Ithaca Energy boosts stake in Cygnus gas field for $154 million

Published 20/05/2025, 07:14
Ithaca Energy boosts stake in Cygnus gas field for $154 million

LONDON - Ithaca Energy PLC has announced its acquisition of an additional 46.25% interest in the Cygnus gas field, situated in the UK Continental Shelf, for a purchase price of £116 million (approximately $154 million). This transaction, pending approval from the National Subsea Research Initiative (NSTA), will increase Ithaca Energy’s operated interest in the field to 85%.

The deal, effective January 1, 2025, is expected to add 23 million barrels of oil equivalent (mmboe) to the company’s 2P reserves and enhance its 2025 production forecast by 12.5 - 13.5 thousand barrels of oil equivalent per day (kboe/d). The acquisition aligns with Ithaca’s strategy to pursue mergers and acquisitions that add high-quality assets at competitive prices.

Cygnus, the largest gas field in the UK Continental Shelf, began production in 2016 and currently has 11 producing wells. Three additional infill wells have been approved, with drilling set to commence in the second quarter of 2025. The first of these wells is expected to come onstream in the second half of 2025, with the next following in the first half of 2026.

Yaniv Friedman, Executive Chairman of Ithaca Energy, expressed confidence in the acquisition, highlighting the transaction as a continuation of the company’s growth strategy. Friedman noted the deal’s alignment with Ithaca’s investment criteria and its potential for further production through additional infill drilling.

Ithaca Energy, listed on the London Stock Exchange (LON:ITH) since November 14, 2022, is one of the largest independent oil and gas companies on the UK Continental Shelf. The company emphasizes its role in contributing to the UK’s energy security and its commitment to achieving net zero emissions ahead of the North Sea Transition Deal targets.

The information reported is based on a press release statement issued by Ithaca Energy PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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