Ithaca wants $70m from share offer

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Date: Wednesday 23 Jul 2008

LONDON (ShareCast) - North Sea focused oil and gas group Ithaca Energy is looking to raise around $70m (£35m) from a share offering, it emerged today.

The company, which recently fought off a £190m takeover approach from US rival Endeavour International, said RBC Capital Markets and Tristone Capital Inc will act as joint bookrunners.

It wants to use the net proceeds to fund ongoing Jacky and Athena project development, the completion of the Beatrice and Stella acquisitions and for general working capital purposes.

“We believe it will fully fund the company through to first production from Athena assuming Jacky first oil is delivered on schedule and available borrowings under the new debt facility remain in-line with initial estimates,” said chief executive Lawrie Payne.

Earlier this month, Endeavour withdrew its interest in pursuing its non-binding proposed offer set at $3.25 a share after Ithaca said the bid undervalued the business and that it wanted to develop ongoing initiatives.

"Ithaca has a number of ongoing initiatives that will be concluded in the near term which we believe will provide greater value for Ithaca's shareholders" said chairman John Summers.

Endeavour chairman, CEO and president William Transier called it “a missed opportunity”.

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