Ithaca launches Senior Notes Offering

Ithaca Energy Limited (“Ithaca” or the “Company”) reports that its wholly-owned subsidiary Ithaca Energy (North Sea) plc (the “Issuer”) has launched an offering of $700 million in aggregate principal amount of senior notes due 2024 (the “Notes”) in connection with the previously announced acquisition of Chevron North Sea Limited (“CNSL”). Pending consummation of the acquisition, the proceeds of the Notes will be deposited into an escrow account.

Upon completion of the acquisition, the proceeds of the Notes will be released from escrow and together with drawings under the Company’s reserves based lending facility, existing cash resources and equity from the Company’s sole shareholder, Delek Group Limited, will be used to (i) fund part of the CNSL acquisition purchase price; (ii) repay in full amounts outstanding under certain of the Company’s existing debt facilities and (iii) pay related fees and expenses. Interest on the Notes will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.

Source / More : Ithaca Energy


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Ithaca Energy Limited (“Ithaca” or the “Company”) announced that it is to acquire Chevron North Sea Limited (“CNSL”) for $2 billion in May.

The transaction will add a further ten producing field interests to the existing Ithaca portfolio, four of which relate to assets operated by the Company, resulting in an approximately 150% increase in the proven and probable (“2P”) reserves of the Company and a 300% increase in forecast 2019 production.

Pro-forma the transaction, Ithaca’s asset base is estimated to consist of 2P reserves of approximately 225 million barrels of oil equivalent1 (“MMboe”) plus a further 45 MMboe2 of proven and probable contingent (“2C”) resources associated primarily with additional near-field development and infill drilling opportunities. The enlarged portfolio, encompassing 18 producing field interests in total, is forecast to deliver pro-forma 2019 production of approximately 80,000 barrels of oil equivalent per day (60% liquids) at an operating cost of approximately $17 per barrel of oil equivalent.

As part of the transaction approximately 500 employees will transfer to the Company, of which around 200 work offshore on the operated assets.
Acquisition of Chevron North Sea Limited

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