Barclays provides funding for North Sea operator Ithaca Energy – enables them to ‘retire’ bridge facility of $350m

Walter Cumming
Walter Cumming

Barclays has signed an agreement with North Sea oil and gas operator Ithaca Energy to support the company’s on-going production activity in the province.

The deal is part of a $710 million debt facility agreed with the company and will support production at the firm’s assets in the UKCS, as well as general working capital requirements.

The agreement has enabled the company to retire the $350 million bridge facility, which was established to facilitate the acquisition of Valiant Petroleum plc earlier this year, and secure a new five year corporate facility which will provide additional funding flexibility.

Ithaca has a solid and diversified UK producing asset base, with current development activities focused on the construction of a new Ithaca-operated production hub in the Greater Stella Area of the UK Central North Sea, around 175 miles (282 kilometers) east-southeast of Aberdeen, Scotland.

The company also has a small Norwegian exploration and appraisal asset portfolio and is headquartered in Aberdeen, United Kingdom, with an office in Oslo, Norway.

Walter Cumming, Head of the Oil and Gas Team at Barclays Corporate Banking, said:

“Ithaca Energy has added to its asset base in recent years and is determined to continue to grow and diversify through targeted acquisitions and licence round participation. These two new debt facilities demonstrate our continued our support of the company and its growth strategy and the continued availability of bank finance for operators.

“We have witnessed a growing confidence in the market with increased activity which we firmly believe is set to continue. We have also noticed that companies are now increasingly prepared to commit to financial agreements and have observed a re-opening of the markets for the right transactions.”

Graham Forbes, Chief Financial Officer, added:

“I am delighted to close a heavily over-subscribed debt facility process, with a leading group of experienced oil and gas sector banks, and to be delivering improved financial terms and flexibility associated with the company’s senior debt funding. It is also particularly pleasing to put in place a corporate facility, which underlines the graduation of the Company into that of a leading independent North Sea oil and gas operator.”


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