Ithaca Energy has signed an agreement with Sumitomo to acquire interests in three UK oil fields for $170m.

The assets, which will be acquired through the purchase of Sumitomo’s subsidiary Summit Petroleum, include a further 20% interest in the Cook field, a 7.48% interest in the Pierce field and a 7.43% interest in the Wytch Farm field.

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The acquisition adds proved and probable reserves of approximately 12 million barrels of oil equivalent and increases Ithaca’s production by 2,500 barrels of oil equivalent per day (boepd).

Ithaca Energy said the acquisition is expected to increase its 2014 production guidance by 2,500boepd, to between 13,500boepd and 15,500boepd.

Ithaca Energy CEO Les Thomas said: "The transaction is directly in line with our strategy to further diversify and expand our producing asset portfolio.

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"The transaction is directly in line with our strategy to further diversify and expand our producing asset portfolio."

"Moreover, each of the assets has clearly defined upsides that provide the opportunity to generate significant additional value."

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The transaction, which is subject to regulatory approvals, is anticipated to be completed in the third quarter of 2014.

Shell operates the Cook oil field, which lies in Block 21/20a (N) in the Central North Sea area of the UK Continental Shelf (UKCS), approximately 175km east of Aberdeen.

The company also operates the Pierce field, which is located in blocks 23/22a (ALL) in the Central North Sea area of the UKCS, approximately 280km east of Aberdeen.

Perenco UK operates the Wytch Farm field, which is situated in offshore blocks 98/6a (ALL) and 98/7a (ALL), as well as onshore blocks SY/88b (ALL), SY/98a (ALL) and SZ/8a (ALL) in Dorset, UK.

Energy