CALGARY, AB--(Marketwired - May 9, 2014) - Ithaca Energy Inc. (TSX: IAE) (LSE: IAE) ("Ithaca" or the "Company") provides an update regarding Greater Stella Area ("GSA") operations and the overall development schedule.
Continued progress has been made on execution of the main GSA development work programmes since the start of 2014. Strong flow test results were achieved on the second Stella development well and drilling is on-going on the third well, with the clean-up flow test results for the well expected around late June 2014. The first of the 2014 subsea infrastructure installation campaigns was completed in April 2014, involving tie-in of the first two development wells at the Stella Main Drill Centre, with the next scheduled activity being the installation of the "FPF-1" floating production facility mooring piles in June 2014.
Construction activities on the main deck of the FPF-1 have been advancing and are currently centred on fit-out of the main pre-assembled units that were lifted on to the vessel in the first quarter of the year along with preparation for the installation of additional equipment packages. A number of key pieces of equipment have recently being installed on the main deck, including the three gas turbine generators. In addition, installation of the four additional buoyancy blisters being added to the columns of the FPF-1 is at an advanced stage of completion.
While progress has been made on the FPF-1 modification works over recent months, the topsides construction programme has advanced more slowly than planned. As a consequence, Petrofac is now forecasting that the vessel 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. Updates on the progress of the modification works will continue to be provided at regular intervals over the coming months.
The incremental cost to the Company of the delayed start-up is estimated to be between $5-10 million, relating primarily to project management costs. The funding position of the company is not materially impacted by the delay.
Les Thomas, Chief Executive Officer, commented:
"While good progress has been made with drilling of the third Stella development well and the subsea infrastructure installation works, the delay in the FPF-1 sail-away schedule and consequently the impact on the timing of Stella first oil is clearly disappointing. We are working with Petrofac to expedite completion of the vessel modification and commissioning works and deliver start-up of the GSA hub as quickly as possible."
First Quarter 2014 Financial Results
The Company will issue its financial results for the first quarter of the year on 13 May 2014.
About Ithaca Energy
Ithaca Energy Inc. (TSX: IAE) (LSE: 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.
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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, Stella first oil, 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, 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).