UK oil group Ithaca Energy has reiterated its guidance for the full year after a solid third quarter, as it announced a farm-in agreement with Shell to the Tobermory gas discovery offshore Shetland Islands.
Production averaged 114.9k barrels of oil per day (boed) over the first nine months of 2025, up from 52.5kboed the year before, reflecting the addition of Eni's UK assets which were integrated into the company in late 2024.
The strong growth was also due to "heavy turnaround activity" in the third quarter, the company said.
Adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses (EBITDAX) nearly doubled to £1.50bn over the year to date, from £759m the year before.
Ithaca said it remains on track to deliver full-year average production rate of 119k-225k boed, following an upgrade to guidance in August, though production is trending to the bottom end of the range.
However, looking ahead, it expects an uplift to its 2025 exit rate from 140kboed in the fourth quarter to around 145kboepd.
"Following the successful completion of the unprecedented TAR season, and with three new high production wells expected on stream in December, the broup is entering 2026 with an increased installed total production system capacity," the firm said.
In a separate statement, Ithaca said it has signed a farm-in agreement with Shell UK for a 50% working interest in licences P2629 and P2630, located in the West of Shetland basin, containing the Tobermory discovery.
Executive chair Yaniv Friedman said the West of Shetland represents a "key basin for the group's long-term growth", adding: "Our investment in the West of Shetland basin is critical not only to the UK's Energy Security strategy, but also in supporting thousands of highly skilled jobs and our world-class supply chain and providing significant gross value add to the UK economy."
The stock was up 0.2% at 234.5p by 0837 GMT.