Welcome!

News Feed Item

Ithaca Announces Operations Update & 2014 Outlook

ABERDEEN, SCOTLAND -- (Marketwired) -- 01/15/14 -- Ithaca Energy Inc (TSX VENTURE: IAE) (LSE: IAE)

TSX: IAE


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



                          Ithaca Energy Inc.

                   Operations Update & 2014 Outlook

                           15 January 2014

Ithaca Energy Inc. (TSX: IAE; LSE: IAE) ("Ithaca" or the "Company")
provides an operational update and guidance on its planned 2014
production and capital expenditure programme.

Highlights

* Total pro-forma 2013 production in line with prior guidance at
  approximately 13,000 barrels of oil equivalent per day ("boepd"); this
  reflects inclusion of full year production from the assets acquired as
  part of the Valiant Petroleum plc ("Valiant") acquisition, which
  completed on 19 April 2013.

* 2014 production is anticipated to be in the range of 11,000 to 13,000
  boepd, approximately 95% oil.No production from the Greater Stella
  Area ("GSA") hub is incorporated in the guidance range.

* First hydrocarbons are anticipated from the GSA hub at the end
  of 2014, resulting in net initial annualised production for the
  Company of approximately 16,000 boepd.

* 2014 capital expenditure is anticipated to total $295 million,
  reflecting investment in execution of the GSA development and a number
  of production enhancement activities.

* Net drawn debt at 31 December 2013 of $348 million (excluding
  $33 million drawn down on the Norwegian tax rebate facility).

* In line with the Company's strategy to restructure its Norwegian
  portfolio, a licence swap has been executed with Tullow Norge AS
  ("Tullow") to exchange the Company's non-operated interests in two
  Barents Sea licences, including the licence containing the
  Langlitinden well, for a non-operated position in a Tullow operated
  Norwegian North Sea licence.

2013 Production
Total pro-forma production in 2013 was approximately 13,000 boepd, 95%
oil; this reflects inclusion of full year production from the assets
acquired as part of the Valiant acquisition, which completed on 19
April 2013.

Average production in the fourth quarter of 2013 was approximately
11,300 boepd, 96% oil.

2014 Operations Outlook
In 2014 the Company's operational focus will be on the delivery of
first hydrocarbons from the Stella field and investment in production
enhancement activities.

Greater Stella Area
As reported in the recent GSA operational update, the focus of the 2014
work programme is on drilling of the third and fourth Stella field
development wells and completion of the subsea infrastructure
installation and FPF-1 modification programmes. First hydrocarbons are
anticipated from the GSA hub at the end of 2014, resulting in net
initial annualised production for the Company of approximately 16,000
boepd.

Causeway Area
Three key production enhancement activities are to be completed in the
Causeway Area during 2014.

Operations are progressing on plan to enable the start-up of electrical
submersible pump ("ESP") support for the Causeway and Fionn production
wells. The electrical plant has been installed on the platform and the
focus is now on hook-up and commissioning activities to enable start-up
of the ESPs in the first half of 2014.

The work required to enable the start-up of water injection on the
Causeway field in the first half of the year is progressing well, with
the water injection riser connecting the subsea infrastructure for the
well to the host platform having been successfully installed in
November 2013. The outstanding work to be finished is the hook-up and
commissioning of the injection riser and platform pipework.

Operations are underway on the sidetrack of the Fionn field production
well, delivery of which is forecast to substantially boost production.
Harsh weather in December and January has resulted in operational
delays, with the well now expected to be in production in the second
quarter of the year.

Dons
The joint venture is planning to drill a new infill production well on
the Don Southwest field during 2014 as part of the expected longer term
drilling programme designed to maximise production and reserves
recovery from the field. Drilling rig contract negotiations are being
finalised, with the potential for production to commence in the first
half of the year.

Athena
It is intended that a workover will be performed on the "P4" well
during the second half of 2014 in order to replace the failed ESP
package in the well. The process for securing a drilling rig is
underway.

Cook
An approximate eight week shutdown of the Shell-operated Anasuria
floating production, storage and offloading vessel ("FPSO") is planned
for the second half of 2014 to enable vessel life extension works to be
undertaken. A new production riser for the Cook field will also be
installed during the shutdown. These works are focused on improving
the operational efficiency and longevity of the facilities, thereby
enabling the full potential of the field to be delivered in the coming
years.

The new "4D" seismic data acquired over the field in 2013 will be
processed and interpreted over the course of the year. This will
improve the understanding of reservoir sweep, with the objective of
identifying the potential for drilling a further well on the field.

Handcross
Operations commenced at the end of December 2013 on the exploration
well being drilled on the Handcross prospect in the West of Shetlands
sector of the UK Continental Shelf. As a result of previously
announced farm-out transactions, the Company is fully carried for its
forecast share of the well cost.

Norway
A licence swap agreement has been executed with Tullow that will result
in the transfer to Ithaca of a 10% non-operated interest in licence
PL507 in the Norwegian North Sea in exchange for its non-operated
interests in licences PL659 (5%), which contains the Langlitinden
prospect, and PL610 (12.5%), both of which lie in the Norwegian sector
of the Barents Sea.

Licence PL507 contains the Lupus prospect, which is scheduled to be
drilled around mid-2014 using the Borgland Dolphin semi-submersible
drilling rig, and lies within approximately 40 kilometres of the
existing Oseberg field facilities. Following completion, which is
subject to normal regulatory consents, the licence partners in PL507
will be Tullow (70%, Operator), Explora (20%) and Ithaca (10%).

2014 Production Guidance
The Company's 2014 net production is anticipated to be in the range of
11,000 to 13,000 boepd, approximately 95% oil. No production from the
GSA hub is incorporated in the guidance range. The range reflects the
dependency upon the timing of the various production enhancement
activities being executed during the year.

The anticipated schedule of 2014 production enhancement activities
means that production volumes are forecast to be weighted towards the
second half of the year. Notably, production during the first quarter
is estimated to be below the full year range driven primarily by an
unplanned shutdown of the Cook field that is currently on-going to
repair the gas export compressor on the Anasuria FPSO host facility.
It is anticipated that the duration of the repairs will result in the
field being re-started in February 2014.

As in previous years, the third quarter of the year is scheduled to be
the period in which the main planned infrastructure maintenance
shutdowns take place. Planned shutdowns are estimated to result in an
overall production deferral of around 1,000 boepd in 2014.

The production forecast anticipates that 2014 will be the last year of
production from the Beatrice area facilities. Under the terms of the
Beatrice facilities lease agreement executed with Talisman in 2008,
Ithaca is able to re-transfer the facilities to Talisman for
decommissioning.

2014 Capital Expenditure
The Company anticipates net 2014 capital expenditure to total
approximately $295 million.

* $185 million relates to the GSA development.This reflects
  deferment of $60 million of capital expenditure that was previously
  anticipated for 2013 into 2014, together with $35 million of pre-first
  hydrocarbons cost growth resulting from the delay to start-up of
  production and the impact on drilling of the recent harsh weather in
  the UK North Sea.

* $100 million relates to investments on the existing producing asset
  portfolio; $70million of drilling on the Fionn, Don Southwest and
  Athena fields and $30 million on enhancing the Cook and Causeway field
  facilities.

* $10 million net of the 78% Norwegian tax refund relates to the
  Company's Norwegian portfolio.

Business Development
During 2014, the Company will continue to seek opportunities to enhance
the value of its existing UK portfolio. The Company's growth strategy
remains focused on securing appraisal, development and production
opportunities with the potential to utilise the organisation's core
subsurface, commercial and project management skills to increase and
accelerate shareholder value.

Net Debt
Net drawn debt at 31 December 2013 was approximately $348 million.
This excludes $33 million drawn down as of the same date on the
Company's Norwegian tax rebate facility, which serves to accelerate the
payment of the 78% tax rebate paid by the Norwegian government on
exploration and appraisal activities.

The Company has in place $710 million of long term senior bank debt
financing facilities, which comprise a $610 million reserve based
lending facility and $100 million corporate facility.

Additional Information
An updated corporate presentation is available on the Company's website
www.ithacaenergy.com.

The Company intends to publish its full year 2013 accounts and year-end
reserves, as evaluated by Sproule International Limited, on 31 March
2014.

                                 - ENDS -



Enquiries:

Ithaca Energy
Les Thomas         [email protected]          +44 (0)1224 650 261
Richard Smith      [email protected]           +44 (0)1224 652 172

FTI Consulting
Edward Westropp    [email protected] +44 (0)207 269 7230
Georgia Mann       [email protected]    +44 (0)207 269 7212

Cenkos Securities
Neil McDonald      [email protected]              +44 (0)131 220 6939
Beth McKiernan     [email protected]             +44 (0)131 220 9778

RBC Capital Markets
Tim Chapman        [email protected]             +44 (0)207 653 4641
Matthew Coakes     [email protected]          +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.

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, continued
availability of financing for 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
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 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 software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...