SOURCE: Ithaca Energy Inc

April 13, 2015 02:00 ET

Ithaca Energy Inc. Successful Flow Test on Final Stella Development Well

ABERDEEN, SCOTLAND--(Marketwired - Apr 13, 2015) - Ithaca Energy Inc. (TSX: IAE) (LSE: IAE)

TSX: IAE

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Ithaca Energy Inc.

Successful Flow Test on Final Stella Development Well

13 April 2015

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces the successful completion of flow test operations on the fifth and final development well on the Stella field, with the well achieving a flow rate of over 8,000 barrels of oil equivalent per day ("boepd").

Well 30/6a-A3Y ("A3") is the fifth development well drilled on the Stella field. The well was drilled to a total measured depth subsea of 14,267 feet, with a 2,137 foot gross horizontal reservoir section completed in the Ekofisk chalk reservoir, the secondary reservoir underlying the primary Stella Andrew sandstone formation in which the first four Stella wells have been drilled. The Ekofisk well intersected a net reservoir interval of 2,073 feet, equating to 97% net pay.

A clean-up flow test was performed in order to remove the chemical stimulation fluids injected to enhance the natural fracture network of the chalk formation and improve the long term production performance of the well. 

Following the initial clean-up period, a series of production flow tests were conducted on the well over approximately five days in order to obtain additional data and fluid samples to assist with future reservoir management. The well was flowed at rates up to 7,172 barrels of oil per day ("bopd") on a 48/64 inch choke, with a gas/oil ratio of approximately 1,850 standard cubic feet per barrel ("scf/bbl"). The average flow rate over a 12 hour period was 8,080 boepd, comprising 6,191 bopd and 11.3 million standard cubic feet per day ("MMscf/d"). Fluid samples show that the oil gravity is approximately 39° API.

The A3 well is currently in the process of being suspended and operations are scheduled to be completed in the coming days. As with the previous Stella development wells, the suspension configuration is such that the well can be brought on to production without the requirement for any further well intervention activity once the "FPF-1" floating production facility is on location and hooked up. 

Upon completion of operations on the A3 well the ENSCO 100 drilling rig will be demobilised from the field, marking the end of the Stella development drilling campaign. The five Stella wells that have been drilled have achieved a combined maximum clean-up flow test rate in excess of 53,000 boepd (100%). This well capacity significantly de-risks the initial annualised production forecast for the Greater Stella Area hub of approximately 30,000 boepd (100%), 16,000 boepd net to Ithaca.

Les Thomas, Chief Executive Officer, commented:
"We are very pleased to have delivered another successful flow test on the fifth and final well in the Stella development drilling programme. The results of the Ekofisk well further de-risk forecast cashflows from the Stella field and the high oil content of the well is encouraging for maximising liquids production during the period when the FPF-1 facilities will be operating at plateau gas production ratesWe are also encouraged that there is further upside potential for reserves development in the Ekofisk formation."

- ENDS -

Enquiries:

Ithaca Energy        
Les Thomas   lthomas@ithacaenergy.com   +44 (0)1224 650 261
Graham Forbes   gforbes@ithacaenergy.com   +44 (0)1224 652 151
         
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)207 397 8900
Nick Tulloch   ntulloch@cenkos.com   +44 (0)131 220 6939
         
RBC Capital Markets    
Daniel Conti   daniel.conti@rbccm.com   +44 (0)207 653 4000
Matthew Coakes   matthew.coakes@rbccm.com   +44 (0)207 653 4000
         

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.

The well test results disclosed in this press release represent short-term results, which may not necessarily be indicative of long-term well performance or ultimate hydrocarbon recovery therefrom. Full pressure transient and well test interpretation analyses have not been completed and as such the flow test results contained in this press release should be considered preliminary until such analyses have been completed.

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.

Forward-looking statements
Some of the statements and information in this press release are forward-looking. More particularly, this press release contains forward-looking statements and information (collectively, "forward-looking statements") concerning production forecasts, the demobilisation of the ENSCO 100 drilling rig and the completion of the Stella development drilling campaign. 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, 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, 2014, and the Company's Annual Information Form for the year ended December 31, 2014 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

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