Delek unit Ithaca completes Siccar, Summit acquisitions

Delek Group Ltd. (TASE:DLEKG), controlled by Yitzhak Tshuva, has reported that its North Sea oil and energy gas operator unit Ithaca Energy has completed the acquisitions of Siccar Point Energy, and Summit Exploration & Production for $1.08 billion. Ithaca is gearing up for an IPO on the London Stock Exchange.

Ithaca will finance the deals through its existing RBL credit facility and the company estimates that the investment is expected to repay the additional debt in the coming year. Delek Group says the deals extend Ithaca's projected production capabilities for over 15 years.

Ithaca is engaged in the exploration, production and sale of North Sea oil and gas and is one of the largest oil and gas producers in the North Sea, where it acts as the operator in some of the fields in which it holds rights. Completion of the latest deals has doubled Ithaca's oil reserves to about 575 million barrels.

Delek Group said that the deal will increase Ithaca's daily production capacity from 8,000-9,500 daily barrels of oil to 75,000-85,000.

Delek Group CEO Idan Wallace said, "The completion of the deals in the second quarter of the year are of major importance for Ithaca and represent another significant step in our preparations for the IPO. This is an important strategic move, which ensures Ithaca access to quality fields with a long term production profile and stable cash flow for many years."

Ithaca executive chairman Gilad Myerson added, "Completion of the deal represents an important milestone in the consolidation of Ithaca as a leading energy player in the UK's North Sea. We are excited by the major potential that exists in the assets and welcome our new professional colleagues who join us today, following the completion of the deal."

Siccar Point Energy owns oil and gas production rights to the Mariner and Schiehallion fields - some of the richest fields in the UK's economic waters. The Siccar deal also includes a stake in the Cambo and Rosebank discoveries, which are among the largest North Sea offshore oil fields yet to be developed.

The Summit Exploration and Production deal sees Ithaca receive 2.18% of the rights in the Elgin-Franklin gas condensate fields in the North Sea, in which it already holds a 3.9% stake, thus increasing its stake to 6.08%.

Published by Globes, Israel business news - en.globes.co.il - on July 3, 2022.