Ithaca Energy PLC (LSE:ITH) has struck a deal to acquire 50% of Shell’s Tobermory gas discovery, offshore Scotland, and also reported higher production for the nine months to 30 September.
The Shell deal covers licences P2629 and P2630 in the West of Shetland basin, where the company is expanding its gas strategy.
Shell will remain the operator after completion, and Ithaca highlighted that the acquisition aligns with its long-term plans for the region.
"We are delighted to announce the farm-in to the Tobermory discovery and to continue our strategic partnership with Shell UK in the area," said executive chair Yaniv Friedman.
He added that the West of Shetland basin remains central to Ithaca’s future development plans, noting progress at Rosebank, Cambo and Tornado.
Ithaca released its third-quarter update showing average year-to-date production of 115,000 boe/d, up from 52,500 boe/d a year earlier, thanks the the expanded operations following the Eni UK asset acquisitions, and new well activity.
Liquidity increased to $1.70 billion, boosted by a €450.00 million bond issue and a $300 million increase in reserves-based lending, while earnings (adjusted EBITDAX) reached $1.5 billion.
Friedman added: "Our year-to-date results for 2025 show what a pivotal period it has been for Ithaca Energy," adding that the enlarged portfolio is delivering improved operational and financial performance.
Management reaffirmed full-year guidance, including production of 119,000 to 125,000 boe/d, and a $500 million dividend target for 2025.