OTTAWA (dpa-AFX) - Ithaca Energy plc (ITH.L), a UK oil and gas exploration and production company, on Monday announced that it has agreed to acquire offshore oil assets in Canada from Suncor Energy Inc. (SU.TO).
The transaction is targeted to be completed in the first half of 2027.
The deal has an upfront cash consideration of $860 million.
The company could pay up to an additional $250 million in contingent consideration linked to Brent crude oil prices.
The company expects to finance the acquisition through cash in hand, its existing borrowing base facility and secured financing in Canada.
The assets include a 48% operated interest in Terra Nova, a 40% non-operated interest in White Rose Existing Lands, and a 38.6% non-operated interest in White Rose Growth Lands, including the West White Rose Extension.
The acquisition adds 103 million barrels of oil equivalent mmboe of 2P reserves.
The company said that the production is expected to reach 35-40 kboe/d by 2029, driven by growth from the West White Rose Extension.
The acquisition is expected to increase the company's medium-term production outlook to 140-150 kboe/d.
The company said the transaction is expected to be immediately accretive to Adjusted EBITDAX, free cash flow and dividend per share upon completion.
On Friday, Ithaca Energy closed trading 0.22% lesser at $275.40 on the London Stock Exchange.
On Friday, Suncor Energy closed trading 0.87% higher at CAD 99.15 on the Toronto Stock Exchange.
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