Elaine Maslin, 13th June 2012
Iona Energy said today it had agreed a deal worth about £50million to increase its stake in the northern North Sea Orlando field to 100%.
It will see Iona taking over a 30% stake from MPX Resources and 35% from Sorgenia in exchange for it paying about £31million of historical costs and future sums amounting to around £18.6million over three years.
The Canadian firm, founded by ex-Ithaca Energy president and chief operating officer Neil Carson, said it expected to get approval for a field development plan in the third quarter of this year.
First oil through a subsea tie-back to CNR International’s Ninian platform for production and processing is planned for the third quarter of next year.
Mr Carson, Iona’s chief executive, said taking control of Orlando would give Iona “synergies” with its nearby Kells discovery, which is also due to be a tie-back to Ninian.
Iona was founded in 2008 by Mr Carson, who was also a co-founder of Ithaca.