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Ithaca Energy Inc. sell Wytch Farm to Verus Petroleum SNS Limited

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Oilfield Technology,

Ithaca Energy Inc. has announced that it has entered into an agreement for the sale of its entire interest in Licences PL089, P534 and PEDL 328, which contain the onshore Wytch Farm field, to Verus Petroleum SNS Limited for a cash consideration of US$53 million.

The transaction realises an attractive value for the field and also releases the Company from a $16 million letter of credit posting in relation to future Wytch Farm decommissioning liabilities.  The proceeds of the transaction will be used to partly repay Ithaca’s existing bank debt facilities.

The effective date of the transaction is 1 July 2017, with the final consideration paid being subject to customary financial adjustments to reflect income and costs incurred since that date.  Completion of the transaction, which is anticipated around mid-2018, is subject to conventional partner and regulatory approvals.

Average Wytch Farm production in 2017 was approximately 1000 boe/d net to Ithaca.  As of 31 December 2016, the Company’s proven and probable reserves associated with the licences was 4.8 million boe, including reserves attributable to the Wareham Field and Beacon discovery, as independently estimated by Sproule International Limited, a qualified reserves evaluator.

2017 Financial Results

The Company is scheduled to release its full year 2017 financial results on 15 March 2018.  A conference call and webcast for bond investors will be held on the same day at 12.00 GMT (07.00 EST), with a playback facility being made available on the Company’s website later in the day.  Dial-in details for the call will be included in the press release that accompanies the financial results documentation.

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