Ithaca Energy Limited is pleased to announce that it has completed the $2 billion acquisition of Chevron North Sea Limited (“CNSL”). The transaction provides a material and important step up in the scale and breadth of the Company’s asset base, adding ten additional producing field interests to the existing portfolio, along with a wider portfolio of investment opportunities from which to grow the future cashflows of the business and accelerate monetisation of the Company’s existing UK tax allowances.

Taking into account the interim period cashflows generated by CNSL since the transaction effective date of 1 January 2019, the $200 million deposit paid at signing of the transaction and conventional working capital adjustments, the price payable at completion of the acquisition was $1.5 billion.

Les Thomas, Ithaca Energy CEO, commented:

“Completion of the CNSL acquisition marks a major milestone in the long term development of Ithaca Energy. The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the Company as a leading UK North Sea oil and gas producer. We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business. With this exciting backdrop, we look forward to contributing to the industry’s objective of maximising economic recovery for the UK North Sea over the years to come”.

Asi Bartfeld, Delek Group CEO, commented:

“With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group’s position as a world class E&P business. The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets.”

Additional Information

The net drawn debt of the Company as of the completion date was $1.6 billion, which takes into account the overall debt refinancing that has been completed in association with the transaction.

The Company will provide further information on the combined business when it announces its financial statements for the three quarters ending 30 September 2019 at the end of November. Full year 2019 consolidated financial results, incorporating the contribution of CNSL from the transaction completion date, will be issued at the end of March 2020 and a conference call for investors will also be held on the same day, in line with the terms of the senior notes indenture.

About Ithaca Energy

Ithaca Energy (IAECN: ISINs US46567TAA25 / USG49774AA35) is an independent oil and gas company with production, development and exploration operations focused on the UK North Sea. The Company was founded in 2004 and has grown through a combination of acquisitions and new field developments. Our strategy is focused on establishing the company as a leading North Sea operator, delivering sustainable growth in free cash flow generation, underpinned by operational excellence and financial discipline.

Ithaca Energy is a wholly owned subsidiary of the Tel Aviv stock exchange listed Delek Group Limited (TASE: DLEKG, US ADR: DGRLY), Israel’s leading integrated energy company.

About Chevron

Chevron Corporation (NYSE:CVX) is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif.

"Reducing greenhouse gas emissions is a global issue that requires global engagement and action," said Wirth. “We are taking action, while continuing to deliver the affordable, reliable, ever-cleaner energy that enables human progress.”