Ithaca Energy has announced that, following its announcement on 20th May 2025 regarding the acquisition of an additional 46.25% interest in the Cygnus gas field from Spirit Energy, it has now completed the Transaction with all conditions precedent having been satisfied. The additional stake brings Ithaca Energy’s operated interest in the Cygnus field to 85%, with Spirit Energy retaining 15%. Approximately £115 million was paid to Spirit Energy upon completion of the Transaction (based on an effective date for the transaction of 1 January 2025 and after customary purchase price adjustments).
Cygnus is the largest UK Continental Shelf gas field and a key contributor to the UK's energy security. The Transaction adds 23 mmboe of 2P reserves (as at 1 Jan 2025) and 2025 pro forma production between 12.5 - 13.5 kboe/d, enhancing the balanced production mix of our portfolio through additional gas volumes. The Transaction adds high-quality assets in our core UK Continental Shelf market and is in line with the Group's strategy to pursue further consolidation in the basin.
Yaniv Friedman, Executive Chairman, commented: 'We’re very pleased to complete the transaction with our partner Spirit Energy and further execute on the Group's strategy to pursue value-accretive M&A, adding high-quality assets in our core UKCS market. This acquisition, and the completed deal with Japex, strengthens the Group’s position as a lead consolidator in the UKCS, adding incremental reserves and production via highly attractive opportunities that meet our strict investment criteria.'
'The success of the Group’s M&A activity in 2025 and improved organic efficiency and production means we expect to exit the year with a production rate of approximately 140 kboe/d, positioning Ithaca Energy as one of the largest producers in the UKCS basin, providing a platform for material cash generation and growth.'
Source: Ithaca Energy
