March 27 Reuters Ithaca Energy has been given a fourweek exclusivity period by Italy39;s Eni, to make an offer for UK exploration and production assets that could expand its output massively, the Londonlisted company said on Wednesday.

Buying those assets, including those of Eni39;s recently acquired Neptune Energy, could add a further 40,00045,000 barrels of oil equivalent per day boed to Ithaca39;s output, taking the total to more than 100,000 boed.

In return, Ithaca would issue new shares to Eni, which will become a major shareholder by holding some 38 to 39 of the enlarged share capital of Ithaca.

Although the discussions are at an advanced stage, there can be no certainty that a Potential Combination will occur, Ithaca said.

Separately, Ithaca39;s fullyear profit slumped to 215.6 million from 1.03 billion, due to impairments related to its oil and gas projects and a heavier tax bill.

Ithaca, owned by Tel Avivlisted Delek Group, incurred a 557.9 million pretax impairment charge on its Greater Stella Area and Alba projects and was charged a 333.4 million bill under Britain39;s Energy Profit Levy EPL.

Shares in Ithaca Energy rose about 2.5 after the two announcements.

Interim Chief Executive Iain Lewis, who stepped up from CFO when Alan Bruce stepped down in January, will have to contend with another year of the windfall tax after British finance minister Jeremy Hunt this month extended the EPL by a year to 2029.

The extension … highlights the continued…