Ithaca Energy PLC (LSE:ITH) has announced a $860 million deal to acquire Suncor Energy’s offshore Canadian oil assets, to lift the firm’s medium-term production outlook to 140,000-150,000 barrels of oil equivalent per day.
The acquisition covers a 48% operated interest in Terra Nova and stakes of 40% and 38.6% respectively in the White Rose Existing and Growth Lands off Newfoundland and Labrador.
Ithaca said the transaction is expected to be immediately accretive to adjusted EBITDAX, free cash flow and dividend per share from completion, with the portfolio set to contribute around 30,000 boe/d on average between 2027 and 2031, peaking at 35,000-40,000 boe/d in 2029.
The assets add an estimated 103 million boe of 2P reserves at around US$8 per barrel, alongside roughly 200 million boe of additional resources.
Executive chairman Yaniv Friedman called the acquisition the “next era of growth” for Ithaca.
“The Transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the United Kingdom Continental Shelf (“UKCS”) through disciplined international expansion in regions we believe we can create long-term value for our shareholders,” Friedman said.
The $860 million upfront price will be funded through cash, its borrowing-base facility and secured Canadian financing, with up to a further $250 million payable depending on Brent prices. Completion is targeted for the first half of 2027, subject to regulatory and government approvals in Canada.
Source: uk.finance.yahoo.com
