U.K.-based E&P Ithaca Energy will acquire JAPEX UK E&P (JUK) from parent company Japan Petroleum Exploration Co. (JAPEX) for $193 million. (Source: Shutterstock)
U.K.-based E&P Ithaca Energy will acquire JAPEX UK E&P (JUK) from parent company Japan Petroleum Exploration Co. (JAPEX) for $193 million, according to a March 25 press release.
JUK holds a 15% working interest (WI) in the Seagull oil field in the U.K. Central North Sea. The deal is expected to increase Ithaca’s WI in Seagull from 35% to 50%, equaling BP’s interest as the field operator, Ithaca said in the release.
The transaction is expected to add 7 MMboe of 2P reserves and approximately 4,000 boe/d to 4,500 boe/d in 2025—approximately 82% liquids with the remainder gas.
The Seagull oil field, which holds over 300 MMboe in place, was developed as a subsea tieback to the BP-operated central processing facility of the Eastern Trough Area Project, the release stated.
Production in the field began on Nov. 6, 2023, from the J1 well. Wells J2 and J3 are now online with J4 due onstream in the second-half of 2025. The field is expected to remain in production until the mid-2030s.
The deal equates to a valuation of around $10/boe, excluding tax losses, Ithaca said.
“Today’s announcement regarding the acquisition of JUK shows Ithaca Energy’s growth strategy in action with a highly accretive, easily digestible and synergistic deal that will add incremental production for the Group, in a well-understood, high-value field,” said Yaniv Friedman, Ithaca Energy’s executive chairman.
Recommended Reading
On The Market This Week (Jan. 20, 2025)
2025-01-24 - Here is a roundup of marketed oil and gas interests in the Delaware Basin, Midcontinent and Bakken from select sellers.
VAALCO Acquires 70% Interest in Offshore Côte D’Ivoire Block
2025-03-03 - Vaalco Energy announced a farm-in of CI-705 Block offshore West Africa, which it will operate under the terms of an acquisition agreement.
Continental Resources Signs JV to Explore Shale Oil, Gas in Turkey
2025-03-12 - Early evaluations from the joint venture between Continental Resources, Türkiye Petroleum and TransAtlantic Petroleum suggest ultimate recoverable reserves could reach 6 Bbbl of oil and 32 Tcf to 65 Tcf of gas.
Helmerich & Payne Seals $1.97B Deal for KCA Deutag
2025-01-16 - Helmerich & Payne has completed its acquisition of KCA Deutag International Ltd. as it positions itself as a global onshore drilling powerhouse.
TotalEnergies Enters 10-Year LNG Supply Deal with Indian E&P
2025-02-12 - Commencing in 2026, TotalEnergies will supply Gujarat State Petroleum Corp. with 400,000 tons of LNG, amounting to six cargoes per year, to terminals on India's west coast.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.