FTSE 100 oil and gas producer Ithaca Energy has agreed to acquire a portfolio of offshore Canadian oil assets from Suncor Energy for up to US$1.1bn (£830m), its first international acquisition outside the North Sea.

The deal comprises a 48% operated interest in the Terra Nova field, a 40% non-operated interest in White Rose Existing Lands and a 38.6% interest in White Rose Growth Lands, including the West White Rose Extension, off Newfoundland and Labrador.

Ithaca will pay $860m upfront, with up to a further $250m of contingent consideration linked to Brent crude prices over 27 months.

Executive chairman Yaniv Friedman said: “This acquisition marks the next era of growth for Ithaca Energy as we make our inaugural international acquisition in Offshore East Coast Canada. The transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the UKCS through disciplined international expansion in regions we believe we can create long-term value for our shareholders.”

Completion is targeted for the first half of 2027, subject to regulatory approvals.

The assets are expected to add average production of around 30,000 barrels of oil equivalent a day (boe/d) between 2027 and 2031, rising to 35,000-40,000 boe/d in 2029.

The London-based company said the assets offered long-life, low-decline production in a basin with similarities to the UK continental shelf, while providing further opportunities for organic development and acquisitions across North America. The deal is expected to be immediately accretive to cash flow, dividends and underlying earnings, while leaving leverage below the company's capital allocation ceiling.

Ithaca, which was promoted from the FTSE 250 to the FTSE 100 in September, saw its shares rise 2.6% to around 283p on Monday morning.

AJ Bell investment director Russ Mould said the acquisition provided diversification from the UK amid continued concerns over the country's fiscal and regulatory environment for oil and gas.

Mould said: “Fresh from finding a place in the FTSE 100 for the first time, a move supported by significant M&A, Ithaca Energy has announced another big deal. The deal could even represent a planting the flag moment in the North American market for Ithaca and act as a precursor to adding further assets in this region.

“Backing from majority shareholder, Israel’s Delek, and cash generation which is being bolstered by high energy prices mean that, for now at least, Ithaca has the necessary firepower to pursue further deals. Though investors may be wary that snaffling so many substantial assets in a relatively short timeframe could lead to some indigestion for Ithaca.”

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