Welcome!

News Feed Item

Ithaca Announces Stella A2 Well Test Results

ABERDEEN, SCOTLAND -- (Marketwired) -- 01/08/14 --

TSX: IAE


Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States



                           Ithaca Energy Inc.

   Successful Stella A2 Well Test Results and GSA Development Update

                            8 January 2014


Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")
announces completion of flow test operations on the second development
well on the Stella field and provides an update on Greater Stella Area
("GSA") development activities.

Highlights

* The second Stella field development well, "A2", flowed at a maximum
  rate of 10,442 barrels of oil equivalent per day ("boepd") on a
  44/64-inch choke, with the full production potential of the well
  limited by the capacity of the well test equipment on the drilling
  rig.

* The rate of 10,442 boepd comprised 7,281 barrels of oil per day
  ("bopd") and 19 million standard cubic feet per day ("MMscf/d") of
  associated gas. The oil is of high quality, approximately 39 degrees
  API.

* The flow test results achieved on the first two Stella development
  wells substantially de-risk the initial annualised production
  forecast of approximately 30,000 boepd (100%), 16,000 boepd
  net to Ithaca, from the four wells planned for start-up of the GSA
  hub.

* A2 drilling operations were executed according to plan, with only the
  harsh weather conditions that have recently effected operations
  across the North Sea slowing the completion of the scheduled flow
  test.

* Following suspension of the A2 well, the ENSCO 100 will be moved
  approximately three kilometres to the Stella northern drilling centre
  location to drill the third and fourth development wells.

* The 2013 subsea infrastructure installation campaign being
  executed by Technip UK Limited ("Technip") has been successfully
  closed out, with approximately 65% of the overall subsea work
  programme having now been completed.

* The forecast duration of the "FPF-1" modifications work, which
  is being performed by Petrofac Facilities Management Limited
  ("Petrofac") under a lump sum incentivised contract, indicates that
  first hydrocarbons from the GSA hub is now anticipated to be at the
  end of 2014.

* The current focus of the FPF-1 vessel modifications programme is
  on preparation of the main deck and construction of the pre-assembled
  processing plant units that are scheduled to be lifted on to the
  vessel in the first quarter of 2014.


Les Thomas, Chief Executive Officer, commented:"The excellent results of
the A2 well represent another important step
in de-risking the forecast production from the Stella field and
realising the significant shareholder value that lies within the
Greater Stella Area. Whilst the FPF-1 modification works are now
forecast to take longer than initially anticipated, the new processing
facilities being installed on the vessel will ensure that a high
quality production facility is deployed at the centre of the GSA hub."


                        Further Information

Drilling

Well 30/6a-A2Z ("A2") is the second of four development wells that are
to be drilled on the Stella field prior to the start-up of production.
The well was drilled to a total measured depth subsea of 14,455 feet,
with a 3,123 foot horizontal reservoir section completed in the
Palaeocene Andrew sandstone reservoir, within the targeted oil rim of
the field.

The reservoir quality encountered by the well was in line with previous
appraisal wells drilled on the field. The well intersected a net
reservoir interval of 2,514 feet (81% net pay).

As with the first Stella development well, "A1", a clean-up flow test
has been performed on the A2 well in order to effectively remove the
drilling fluids used to complete the well and gain additional reservoir
data and fluid samples.

The well flowed at a maximum rate of 10,442 boepd on a 44/64-inch
choke, with the full production potential of the well limited by the
capacity of the well test equipment on the drilling rig. Fluid samples
show that the oil is of high quality, approximately 39 degrees API.

The maximum flow rate of 10,442 boepd comprised 7,281 bopd of oil and
19 MMscf/d of associated gas. This compares to the results of the "A1"
well completed in late September 2013, which achieved a maximum flow
rate of 10,835 boepd (6,499 bopd and 26 MMscf/d) on a 56/64-inch
choke. The proportionately higher A2 oil rate is driven by the
location of the well entirely within the oil rim of the field.

The test results achieved on the first two Stella development wells
substantially de-risk the initial annualised production forecast for
the GSA hub of approximately 30,000 boepd (100%), 16,000 boepd net to
Ithaca, which was announced at the time the development concept was
selected in October 2011.

The A2 well is in the process of being suspended. The suspension
configuration is such that the well can be brought on to production
without the requirement for any further well intervention activity once
the FPF-1 is on location and hooked up.

Following completion of the well suspension operations the ENSCO 100
will be moved approximately three kilometres to the Stella northern
drilling centre location to drill the third and fourth development
wells.

A2 drilling operations were executed according to plan, with only the
harsh weather conditions that have recently effected operations across
the North Sea slowing the completion of the scheduled flow test.

The high-spec ENSCO 100 heavy duty jack-up drilling rig that is being
used for the GSA development drilling campaign commenced operations on
the Stella field in June 2013. Management of the drilling and
completion operations is being performed by Applied Drilling Technology
International ("ADTI") under "turnkey" contract arrangements.

Subsea Infrastructure

The 2013 subsea infrastructure installation programme was successfully
closed out in November 2013. The main subsea structures for the
production and export of hydrocarbons (the manifolds and riser bases),
the 60km gas export pipeline and the infield flowlines and umbilicals
have all been installed and the associated diver tie-in works completed
during the 2013 campaign. This means that approximately 65% of the
overall subsea work programme has now being completed; corresponding to
a total of over 220 vessel days in 2013.

Planning for the 2014 subsea infrastructure campaign is well advanced,
with the key workscopes to be completed involving the tie-in of the
wells, installation of the dynamic flexible risers and umbilicals that
will connect the riser bases to the FPF-1, the vessel mooring spread
and the oil export facilities.

Execution of the main subsea infrastructure manufacturing and
installation programme is being completed by Technip under an
integrated Engineering, Procurement, Installation and Construction
contract.

FPF-1 Modification Works

The forecast duration of the FPF-1 modifications work indicates that
first hydrocarbons from the GSA hub is now anticipated to be at the end
of 2014.The extended duration of the works is attributable to the
longer than estimated time required to install the new, rather than
refurbished, oil and gas processing plant on the vessel. While this is
now scheduled to take longer than if the original equipment on the
FPF-1 had been re-used, the new facilities are designed to ensure that
a quality vessel capable of achieving high operational uptime
performance is deployed on the hub.

The current focus on the FPF-1 modifications programme is the
preparation of the main deck and construction of the pre-assembled
processing plant units for lifting on to the vessel in the first
quarter of 2014. The units will contain structural steel, pipework
spools, cable trays and equipment that will make up key elements of the
topsides processing plant on the vessel. All the key long lead pieces
of processing plant equipment that will be installed within and
alongside the units are now on location at the Remontowa yard.

Execution of the FPF-1 modifications work programme is being performed
by Petrofac under the terms of a lump sum incentivised contract with
the GSA co-venturers.

Greater Stella Area Development Strategy

Ithaca's focus on the GSA is driven by the monetisation of reserves
within the existing portfolio and the generation of additional value
via the wider opportunities provided by the range of undeveloped
discoveries surrounding the production hub.

The development involves the creation of a production hub based on
deployment of the FPF-1 floating production facility located over the
Stella field, with onward export of oil and gas. The FPF-1 will serve
as the processing hub for production from the Stella and Harrier
fields, plus potential incremental production from Hurricane and other
tie-back opportunities in the area.

Ithaca's GSA joint venture partners are Dyas UK Limited (25.34%), a
long established privately owned North Sea oil and gas producer, and
Petrofac GSA Limited (20%), a subsidiary of Petrofac plc, the leading
international oil and gas services provider listed in the FTSE 100 in
London.


                                - ENDS -


Enquiries:

Ithaca Energy
Les Thomas        lthomas@ithacaenergy.com          +44 (0)1224 650 261
Richard Smith     rsmith@ithacaenergy.com           +44 (0)1224 652 172

FTI Consulting
Edward Westropp   edward.westropp@fticonsulting.com +44 (0)207 269 7230
Georgia Mann      georgia.mann@fticonsulting.com    +44 (0)207 269 7212

Cenkos Securities
Neil McDonald      nmcdonald@cenkos.com              +44 (0)131 220 6939
Beth McKiernan     bmckiernan@cenkos.com             +44 (0)131 220 9778


RBC Capital Markets
Tim Chapman        tim.chapman@rbccm.com             +44 (0)207 653 464

1
Matthew Coakes     matthew.coakes@rbccm.com          +44 (0)207 653 4871




Notes

In accordance with AIM Guidelines, John Horsburgh, BSc (Hons)
Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and Subsurface
Manager at Ithaca is the qualified person that has reviewed the
technical information contained in this press release. Mr Horsburgh
has over 15 years operating experience in the upstream oil and gas
industry.

References herein to barrels of oil equivalent ("boe") are derived by
converting gas to oil in the ratio of six thousand cubic feet ("Mcf")
of gas to one barrel ("bbl") of oil. Boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1
bbl is based on an energy conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 bbl, utilising a conversion ratio at 6 Mcf: 1
bbl may be misleading as an indication of value.

The well test results disclosed in this press release represent
short-term results, which may not necessarily be indicative of
long-term well performance or ultimate hydrocarbon recovery therefrom.

About Ithaca Energy

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas
operator focused on the delivery of lower risk growth through the
appraisal and development of UK undeveloped discoveries, the
exploitation of its existing UK producing asset portfolio and a
Norwegian exploration and appraisal business targeting the generation
of discoveries capable of monetisation prior to development. Ithaca's
strategy is centred on generating sustainable long term shareholder
value by building a highly profitable 25kboe/d North Sea oil and gas
company. For further information please consult the Company's website
www.ithacaenergy.com.


Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States



Forward-looking statements

Some of the statements and information in this press release are
forward-looking. Forward-looking statements and forward-looking
information (collectively, "forward-looking statements") are based on
the Company's internal expectations, estimates, projections,
assumptions and beliefs as at the date of such statements or
information, including, among other things, assumptions with respect to
production, drilling, construction times, well completion times, risks
associated with operations, future capital expenditures, future
acquisitions and cash flow. The reader is cautioned that assumptions
used in the preparation of such information may prove to be incorrect.
When used in this press release, the words "anticipate",
"continue","estimate", "expect", "may", "will", "project", "plan",
"should","believe", "could", "target" and similar expressions, and the
negatives
thereof, whether used in connection with operational activities,
drilling plans, production forecasts, budgetary figures, potential
developments or otherwise, are intended to identify forward-looking
statements. Such statements are not promises or guarantees, and are
subject to known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. The Company believes
that the expectations reflected in those forward-looking statements and
are reasonable but no assurance can be given that these expectations,
or the assumptions underlying these expectations, will prove to be
correct and such forward-looking statements and included in this press
release should not be unduly relied upon. These forward-looking
statements speak only as of the date of this press release. Ithaca
Energy Inc. expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in its expectations
with regard thereto or any change in events, conditions or
circumstances on which any forward-looking statement is based except as
required by applicable securities laws.

Additional information on these and other factors that could affect
Ithaca's operations and financial results are included in the Company's
Management's Discussion and Analysis for the year ended December 31,
2012, and the Company's Annual Information Form for the year ended
December 31, 2012 and in reports which are on file with the Canadian
securities regulatory authorities and may be accessed through the
Company's profile on the SEDAR website (www.sedar.com).

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...