Ithaca Energy has signed a Sale and Purchase Agreement to acquire the 40% stake in the Fotla Discovery it doesn't already own and three exploration licences (P.213 Area C, P.345 Area A and P.2536) from Spirit Energy Resources. The Acquisition, which is subject to the satisfaction of certain conditions precedent including regulatory approval, and with limited near-term cash outflow, will bring the Group's working interest in the Fotla Discovery to 100% at completion, providing Ithaca Energy with full control over pre-final investment decision work and timing. 

The Fotla Discovery, operated by Ithaca Energy, is located in Block 22/1b of the UK North Sea in 431 ft of water, approximately 10 km southwest of the Ithaca Energy operated Alba field. The field was discovered in August 2021 by the Group's drilling of the 22/1b-12 well and subsequently appraised by two side-tracks. As previously stated, development plans are currently being evaluated, with first production from the Fotla Discovery targeted in 2026. The conceptual field development plan consists of a subsea tieback to existing infrastructure.

The total transaction consideration comprises two capped contingent payments, which are payable approximately two thirds on final investment decision and a third on first production.

Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: 
"We are pleased to announce the acquisition of the remaining stake in the Fotla Discovery and three additional exploration licenses. The acquisition will provide Ithaca Energy with full control over the pre-final investment decision work programme and timing of project sanction as we seek to maximise value from our high-quality investment portfolio."

KeyFacts Energy: Ithaca Energy UK country profile