Suncor Sells Assets to Ithaca

Suncor Energy has agreed to sell its stakes in three Canadian East Coast oil projects to Ithaca Energy for $841.7 million. The deal includes a 48% operated working interest in Terra Nova, a 40% non-operated interest in the White Rose Existing Lands, and a 38.6% non-operated interest in the White Rose Growth Lands.

The assets are located in shallow waters off the East Coast of Newfoundland and Labrador, Canada. Terra Nova is a producing, operated shallow-water oil asset supported by a recently completed Floating Production Storage and Offloading asset life extension project.

Yaniv Friedman, Executive Chairman of Ithaca Energy, said the acquisition marks the next era of growth for the company. He added that the deal delivers on the company's clear stated growth strategy to diversify and grow its production and resource base.

The acquisition is expected to add long-life, low-decline barrels in an offshore operating environment similar to the UKCS. It is also expected to materially enhance Ithaca Energy's medium-term production outlook and create a platform for further organic growth and consolidation.

Ithaca Energy will pay upfront cash consideration of $860 million, plus potential oil price related contingent consideration of up to $250 million. The deal is subject to customary closing conditions and is expected to close in the near future.

Suncor Energy's decision to sell its stakes in the Canadian offshore assets is part of its strategy to focus on shareholder value. The company is seeking to optimize its portfolio and allocate resources to its core assets.

The acquisition is a significant milestone for Ithaca Energy, marking its inaugural international acquisition in Offshore East Coast Canada. The company is seeking to replicate its success in the UKCS through disciplined international expansion in regions it believes it can create long-term value for its shareholders.