Ithaca Energy PLC (LSE:ITH) has struck a deal to increase its stake in the Seagull field, in the UK Central North Sea, and acquire significant associated tax losses.
It is to pay $193 million for a 15% stake in Seagull, taking its overall position in the field from 35% to 50% - making it equal and joint owner with project operator BP.
Seagull is described as a high-margin-producing field. It began output in November 2023, with two wells, and has since ramped up. The field’s fourth well is due online later this year, and its current predicted lifespan runs into the ‘mid-2030s’.
Significantly, today’s deal comes with substantial previously accrued tax losses – US$215 million in the corporate tax and supplementary tax ringfence, and, $105 million in Energy Profit Levy losses – which will add some additional shelter from the UK tax man.
"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,” Ithaca executive chair Yaniv Friedman said.