10 Jul 2014 07:00
Not for Distribution to U.S. Newswire Services or for Dissemination in the United States
Ithaca Energy Inc.
Second Quarter 2014 Production Update
10 July 2014
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") provides a production update following the end of the second quarter of the year ("Q2-2014").
Average pro-forma production in Q2-2014 was approximately 14,400 barrels of oil equivalent per day ("boepd"), 94% oil, including the contribution from the assets being acquired from Sumitomo Corporation (the "Summit Assets"). This performance is in line with the Company's pro-forma 2014 production guidance range of 13,500 to 15,500 boepd.
· Production in Q2-2014 excluding the Summit Assets was approximately 11,900 boepd, in line with the 2014 guidance range of 11,000 to 13,000 boepd for the Company's existing assets.
· Production in Q2-2014 for the Summit Assets was calculated to be approximately 2,500 boepd, based on available operator data, in line with the forecast 2014 pro-forma production guidance for the acquired assets.
While the Company derives the economic benefit of production from the Summit Assets from the acquisition effective date of 1 January 2014, these assets will not be consolidated into Ithaca's financial statements until the transaction completion date, which is expected to occur in the third quarter of 2014 ("Q3-2014").
As previously guided, 2014 production volumes are forecast to be weighted towards the second half of the year, notably from the later part of Q3-2014 post the completion of planned summer maintenance shutdowns, as a result of the following activities:
· Start-up of the Don Southwest "TJ" infill well, drilling of which has recently been completed, and incremental production resulting from chemical treatments on a number of other wells on the field.
· Production optimisation and resolution of operational matters in the Causeway Area, including the commencement of water injection.
· Re-commencement of production from the Pierce field following completion of the on-going modification works being performed on the field's floating production, storage and offloading vessel to enable tie-in of a third party field.
· Completion of the planned well workover on the Athena field, for which the rig is scheduled to arrive on location at the field in August 2014.
Q2-2014 Financial Results
The Company is scheduled to release its Q2-2014 financial results on the 12 August 2014.
- ENDS -
Enquiries:
Ithaca Energy | ||
Graham Forbes | gforbes@ithacaenergy.com | +44 (0)1224 652 151 |
Richard Smith | rsmith@ithacaenergy.com | +44 (0)1224 652 172 |
FTI Consulting | ||
Edward Westropp | edward.westropp@fticonsulting.com | +44 (0)203 727 1521 |
Shannon Brushe | shannon.brushe@fticonsulting.com | +44 (0)203 727 1077 |
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 4641 |
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.
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, the acquisition of assets from Sumitomo Corporation and the current and forecast production from those assets, 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, 2013, and the Company's Annual Information Form for the year ended December 31, 2013 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).