Ithaca Energy said yesterday that the integration of recently acquired Valiant Petroleum is progressing well, putting the combined company on track to be a leading mid-cap North Sea oil and gas operator. Ithaca said its first quarter cashflow from operations increased more than 20 per cent to $34.8m (£22.8m), up from $28.4m at the same time last year. It said the company had a strong balance sheet with cash net of drawn debt of $10.6m at the end of the quarter plus a UK tax allowance pool of $424m. Combined with Valiant, the cash flow was £100m with $900m available for tax allowances. Valiant’s UK office is set to close in July.