Ithaca Energy continues negotiations on takeover

North Sea oil and gas player, Ithaca Energy, increased its estimated reserves and boosted cashflow during 2011 and says it is still in negotiations over a possible takeover.

In 2011 the company saw cashflow from operations at $103.5m, against a prior year figure of $88.9m.

Profit before tax came in at $37.1m, slightly down on 2010's figure of $38m.

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The firm's "proved and probable" resources gained 9% during the year to 50.25 mmboe (million barrels of oil equivalent).

Ithaca is also one of the companies to have benefited from the 2012 budget in which the Chancellor, George Osborne, increased the so-called "small field allowance".

Ithaca says these changes will save it $80m over the lifetime of its fields in the Greater Stella area.

In today's update the company gives no further details on the potential offer that was announced in January, other than to say "discussions continue with interested parties".

By 15:53 shares in Ithaca had risen 0.9%. Since the start of the year the stock has gained 43.6%.

BS