Aberdeen-headquartered Ithaca Energy Plc has agreed to acquire a portfolio of “conventional offshore oil assets” located in shallow waters off the East Coast of Newfoundland and Labrador, Canada, from Suncor Energy.
The deal is for an upfront cash consideration of $860 million, plus potential oil price related contingent consideration of up to $250 million “based on a sharing factor of 50%.”
Ithaca Energy said: “The assets comprise a 48% operated working interest in Terra Nova, a 40% non-operated interest in the White Rose Existing Lands, and a 38.6% non-operated interest in the White Rose Growth Lands, including the West White Rose Extension ….
“Terra Nova is a producing, operated shallow-water oil asset supported by a recently completed Floating Production Storage and Offloading (FPSO) asset life extension project.
“White Rose is operated by Cenovus Energy Inc. and has high-margins and substantial near-term production growth expected from West White Rose, where first production is anticipated in Q4 2026.”
Ithaca Energy executive chairman Yaniv Friedman said: “This acquisition marks the next era of growth for Ithaca Energy as we make our inaugural international acquisition in Offshore East Coast Canada.
“The Transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the United Kingdom Continental Shelf (UKCS) through disciplined international expansion in regions we believe we can create long-term value for our shareholders.”
“The Transaction builds on our vision for ‘Scale, Stability and Strength’. It adds long-life, low-decline barrels in an offshore operating environment similar to the UKCS, which will materially enhance our medium-term production outlook and create a platform for further organic growth and consolidation, while expected to deliver immediate cash flow and dividend accretion.”
“We are excited to welcome an experienced operating team with deep regional expertise and to build on the strong operating history of these assets.”