Ithaca Energy Invests $860 Million in Canadian Oil Drilling
Translated & summarized from Maariv by baba
Ithaca Energy is acquiring Canadian oil assets for $860 million, significantly increasing its production capacity. The deal includes potential additional payments based on oil prices and will be financed through loans.
The story in 5 lines · by baba
- Ithaca Energy is buying Canadian oil assets for $860 million.
- The deal includes 103 million barrels of oil.
- Production is expected to increase by 30,000 barrels daily.
- An additional $250 million payment is possible.
- The acquisition expands Ithaca's presence in Canada.
Ithaca Energy, a company primarily focused on the North Sea, is expanding its operations by acquiring oil assets in Canada for $860 million. The deal includes 103 million barrels of oil, with an average acquisition cost of $8 per barrel. An additional contingent payment of up to $250 million may be paid over the next 27 months, depending on actual oil prices.
Ithaca Energy will finance the transaction through a reserve-based lending facility, supplemented by local financing in Canada for the acquired assets. This acquisition is expected to significantly boost Ithaca's daily production, adding 30,000 barrels per day between 2027 and 2031. Following the deal, the company anticipates revising its production forecast upwards to between 140,000 and 150,000 barrels per day.
Idan Wells, CEO of Delek Group, stated that the transaction represents a further step in deepening the company's engagement in the Canadian energy market, complementing its existing stake in InPlay. He added that the deal reflects the strategy to enhance the value of their core, high-quality assets.
