Ithaca Energy shares soar on bid approach
Ithaca Energy (LON:IAE, CVE:IAE) shares this morning soared over 20 per cent as it became the latest North Sea takeover target.
The firm has received a confidential, non-binding proposal to acquire all of its outstanding shares, the company said in a stock market statement.
It said the proposal is conditional on due diligence and the negotiation of all definitive documents.
Ithaca also stressed that talks are at a preliminary stage and there can be no certainty that an offer will be made for the company.
The company's principal asset is its operated 22.5 per cent stake in the Athena oilfield. The field has 24.4 million barrels of 2P oil reserves and production was expected to start in the final quarter of 2011.
However the delivery of a floating production vessel was delayed. The vessel is expected to sail from Dubai soon.
Any deal to acquire Ithaca would be the latest piece of consolidation among junior North Sea oilfield developments.
It follows Premier Oil's (LON:PMO) £221 million bid to acquire EnCore Oil (LON:EO.) and EnQuest's (LON:ENQ) US$90 million deal to buy a 20 per cent stake in Nautical Petroleum's (LON:NPE) Kraken field from a minority stake holder.
At 9.14 am on AIM Ithaca shares were up 26.25p, or 18 per cent, trading at 169p each.
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