Ithaca Energy Q1-2014 Financial Results

Ithaca Energy Inc. (“Ithaca” or the “Company”) announces its financial results for the three months ended March 31 2014. 

Financial Results 

Production & Operations 
Average production in Q1-2014 was 9,222 barrels of oil equivalent per day (“boepd”), 95% oil, in line with forecast performance given shutdowns on the Cook and Beatrice fields during the quarter. Average production in April 2014 was approximately 11,200 boepd stepping up to more than 14,000 boepd to date in May. 

The increasing production trend is being driven by execution of the 2014 production enhancement program, which is progressing well. The Fionn sidetrack has recently been completed and production from the field has recommenced. The host platform works required to enable the start-up of electrical submersible pumps (“ESPs”) on the Causeway and Fionn fields are substantially complete. Drilling of the planned infill well on the Don Southwest field commenced in late April 2014, with the well expected to be brought online in the third quarter of the year. 

Total 2014 production guidance remains unchanged in the range of 11,000 to 13,000 boepd, approximately 95% oil. The anticipated schedule of 2014 production enhancement projects means that volumes are forecast to be weighted towards the second half of the year. 

The Company was awarded the “Don NE” license (40%, non-operated) that lies adjacent to its existing Dons field position by the Department of Energy and Climate Change during the quarter. Submission of a “Phase I” Field Development Plan is planned for later this year to enable an early production well to be drilled on the license from the existing Don Southwest facilities potentially as early as the end of 2014. 

Greater Stella Area Development Update 
As previously announced on 9 May 2014, Petrofac is forecasting that the FPF-1 floating production facility will be ready for sail-away from the Remontowa yard in Poland to the Stella field in spring 2015. This schedule is anticipated to result in first hydrocarbons from the GSA hub in mid-2015. Ithaca is working with Petrofac to expedite the remaining construction and commissioning works on the FPF-1. 

Graham Forbes, Chief Financial Officer, commented: 
“Earnings of $16 million represent satisfactory financial results for the first quarter, with the Company on-track to deliver the anticipated step-up in operating cashflows over the coming months as the various 2014 production enhancement projects are completed.”