U.K.-based E&P Ithaca Energy will acquire JAPEX UK E&P (JUK) from parent company Japan Petroleum Exploration Co. (JAPEX) for $193 million, according to a March 25 press release.

JUK holds a 15% working interest (WI) in the Seagull oil field in the U.K. Central North Sea. The deal is expected to increase Ithaca’s WI in Seagull from 35% to 50%, equaling BP’s interest as the field operator, Ithaca said in the release.

The transaction is expected to add 7 MMboe of 2P reserves and approximately 4,000 boe/d to 4,500 boe/d in 2025—approximately 82% liquids with the remainder gas.

The Seagull oil field, which holds over 300 MMboe in place, was developed as a subsea tieback to the BP-operated central processing facility of the Eastern Trough Area Project, the release stated.

Production in the field began on Nov. 6, 2023, from the J1 well. Wells J2 and J3 are now online with J4 due onstream in the second-half of 2025. The field is expected to remain in production until the mid-2030s.

The deal equates to a valuation of around $10/boe, excluding tax losses, Ithaca said.

“Today’s announcement regarding the acquisition of JUK shows Ithaca Energy’s growth strategy in action with a highly accretive, easily digestible and synergistic deal that will add incremental production for the Group, in a well-understood, high-value field,” said Yaniv Friedman, Ithaca Energy’s executive chairman.

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