Cash starts to flow at Ithaca

Canadian independent oil and gas company Ithaca Energy moved into the black in the second quarter and recorded its first quarter of positive cash flow.Net profit for the three months to end-June was $3.78m, compared to a loss of $1.52m in the second quarter of 2008, helped by a $5.6m gain on financial instruments.Revenue soared to $29.9m from $0.13m a year earlier and from $3.84, in the first quarter.The company recorded a positive cash flow of $16.9m as production from its Jacky field started on 6 April.The weighted average realised price for the quarter was $60.38 aa barrel. Since the end of the reporting period the company made net oil sales in July of 175,124 barrels at a realised price of $71.22 per barrel.Total cash at the end of June stood at $14.3m, of which $11.9m was restricted cash held as collateral for letters of credit issued by the Bank of Scotland.