British Ithaca Energy plc and Italian Eni are Considering a Merger
Leading independent oil and gas operator in the UK North Sea, Ithaca Energy, today announced it has entered into an exclusivity agreement for a potential transformational combination with substantially all of Eni S.p.A.’s upstream assets in the UK, including the recently acquired assets of Neptune Energy.
The exception will be certain assets, including CCUS Eni and assets in the Irish Sea, Ithaca Energy said in a statement.
Ithaca Energy and Eni have entered into a 4-week Exclusivity Agreement to allow time for the separate development of contract documentation required in connection with the potential combination.
Eni will contribute to the UK business in exchange for the issue of new Ithaca Energy shares to Eni, with Eni expected to own between 38% and 39% of Ithaca Energy’s enlarged share capital upon completion of the merger.
Eni has a well-diversified asset base in 4 key fields: Elgin Franklin, J-Area, Cygnus and Seagull; Ithaca Energy is already a partner in the Elgin Franklin and Jade fields.
As of 31 December 2023, Eni’s UK production forecast for 2023 was 40-45 thousand boe/d, with reserves of approximately 100 million boe.
The combination will enhance Ithaca Energy’s status as the largest independent resource operator with interests in 6 of the 10 largest fields.
The potential combination will require shareholder approval.
While discussions are at an advanced stage, there is no certainty that the potential combination will occur or the final terms or timing, Ithaca Energy said.
