Ithaca, Talisman finalize Beatrice agreement

Ithaca Energy has signed final agreements with Talisman Energy to lease the Beatrice oilfield and Nigg oil terminal.

Offshore staff

LONDON -- Ithaca Energy has signed final agreements with Talisman Energy to lease the Beatrice oilfield and Nigg oil terminal. Transfer of operatorship takes place today (Nov. 10).

Ithaca will acquire a lease for a 100% interest in Beatrice from Talisman for a minimum of three years, extendable at Ithaca's election for the duration of production, in consideration for the sum of £10 million (approximately $16.5 million).

Beatrice currently produces approximately 2,000 b/d of oil. A second platform, Beatrice Bravo is shut-in and Ithaca intends to restore production by connecting it to a pipeline to be constructed to Jacky. Bravo was producing approximately 800 b/d of oil when it was shut in last year. Jacky is an Ithaca discovery immediately northeast of the Beatrice field.

The company is proceeding with the development of the Jacky discovery with delivery of the platform to Invergordon early last week ready for installation. Pipelines will be laid this December allowing Beatrice Bravo production to re-commence, the company says.

Tie-in of the Jacky production well will be done using the rigEnsco 92 early 2009 with production rates of approximately 7,500 b/d of oil gross expected.

11/10/2008

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