Ithaca Energy Completes Cygnus Stake Acquisition, Eyes Production Surge

Ithaca Energy PLC (LON: ITH) announced the completion of its acquisition of an additional 46.25% interest in the Cygnus gas field from Spirit Energy, solidifying its position as a key player in the UK Continental Shelf (UKCS).

The transaction, initially announced on May 20, 2025, sees Ithaca Energy’s operated interest in Cygnus rise to 85%, with Spirit Energy retaining the remaining 15%.

The company paid approximately £115 million to Spirit Energy upon completion, based on an effective date of January 1, 2025, and after customary purchase price adjustments.

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Cygnus, the largest UK Continental Shelf gas field, is a critical asset for UK energy security. This acquisition adds 23 million barrels of oil equivalent (mmboe) of 2P reserves (as of January 1, 2025) and is projected to contribute between 12.5 and 13.5 thousand barrels of oil equivalent per day (kboe/d) to Ithaca Energy’s 2025 pro forma production. This enhancement is expected to improve the balance of the company’s production mix through increased gas volumes.

This strategic move aligns with Ithaca Energy’s broader strategy to consolidate its position within the UKCS. The acquisition is expected to deliver high-quality assets in the company’s core market, meeting the Group’s stringent investment criteria for value-accretive mergers and acquisitions (M&A).

The company’s focus on M&A activity and improved operational efficiency is already showing results. Ithaca Energy anticipates exiting 2025 with a production rate of approximately 140 kboe/d. This positions Ithaca Energy as one of the largest producers in the UKCS basin, providing a solid foundation for material cash generation and future growth.

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.”