ABERDEEN, SCOTLAND--(Marketwire - Jan 10, 2013) -
Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States
Ithaca Energy Inc.
Q4-2012 Production & 2013 Outlook
10 January 2013
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) reports fourth quarter 2012
("Q4-2012" or the "quarter") production results and provides guidance
on the Company's planned 2013 production and capital expenditure
programme.
Highlights
o Q4-2012 net average export production, including net production
from the Cook and MacCulloch field interests being acquired from
Noble Energy Inc. (the "Noble Assets"), was 6,631 barrels of oil
equivalent per day ("boepd"), within the Company's guidance range
for the quarter.
o Net average export production for 2013 is forecast to be in the
range of 6,000 to 6,700 boepd, including the net contribution
anticipated from the Noble Assets.
o The Company's 2013 capital expenditure programme is focused on
execution of the Greater Stella Area ("GSA") development and is
anticipated to total US$360 million, which will be funded from
existing financial resources.
Q4-2012 Production
Total net export production in the quarter, including net production
from the Noble Assets, was 610,070 barrels of oil equivalent ("boe"),
resulting in an average rate of 6,631boepd, with approximately 90%
being oil production. This represents a 31% increase on production in
the third quarter of 2012 (Q3-2012: 5,061boepd) and is within the
Q4-2012 guidance range issued by the Company of 6,300 to 6,900 boepd.
Production in the quarter came from the operated Athena, Beatrice,
Jacky and Anglia fields, the non-operated Cook, Broom and Topaz fields
and the Noble Assets. The effective date of the Noble Assets
acquisition is 1 January 2012, with completion anticipated to occur in
Q1-2013.
Production in Q4-2012 benefited from strong performance by the Athena
field, which continues to produce "dry" oil at a stable gross daily
rate of between 10,000 and 11,000 barrels of oil per day ("bopd"),
2,250 to 2,475 bopd net to Ithaca. Forecast production was achieved
from the Beatrice, Jacky, Cook, Broom and MacCulloch Fields.
Both the Anglia and Topaz fields were shut-in for a considerable period
during the quarter due to issues on the ConocoPhillips operated
Lincolnshire Offshore Gas Gathering System ("LOGGS"), the gas export
infrastructure that receives and transports gas from these fields to
shore. Both fields came back online at the end of December 2012.
2013 Production and Capital Expenditure Programme Guidance
The Company's 2013 net average export production is anticipated to be
in the range of 6,000 to 6,700 boepd, including approximately
1,000boepd from the Noble Assets; approximately 90%is forecast to be
oil production.Approximately 80% of total net production is
anticipated to be derived from the Cook, Athena and Beatrice / Jacky
fields.
The production guidance range reflects anticipated water breakthrough
on the Athena field during 2013 and the impact of planned maintenance
shutdowns, most notably including approximately 25 days on the Shell
operated Anasuria FPSO, the host facility for the Cook field, and 20
days for the Beatrice Complex.The MacCulloch field is currently
shut-in due to suspected damage resulting from the recent period of
extreme weather in the North Sea.The field operator, ConocoPhillips,
is currently investigating the exact nature of the damage and the
schedule associated with reinstating production.The 2013 production
guidance range allows for a potential extended shutdown period
associated with the resumption of normal operations on the MacCulloch
field.
The Company anticipates 2013 net capital expenditure to total
approximately US$360 million. This expenditure is almost entirely
focused on execution of the GSA development, involving commencement of
the development drilling campaign, scheduled for late Q1-2013,
performance of the key offshore subsea infrastructure installation
works by Technip and the FPF-1 modifications programme by Petrofac at
the Remontowa shipyard in Poland.
The Company will fund the 2013 capital expenditure programme from its
existing cash balance, anticipated cashflow from its producing asset
portfolio and some of its currently undrawn US$430 million debt
facility.
Over the course of 2013, the Company intends to issue quarterly
operational updates (alongside its usual quarterly production updates)
highlighting progress on key GSA development activities. Specific
announcements are anticipated to be issued upon the completion of
milestones including for example, commencement of the development
drilling campaign and completion of each well, execution of the subsea
infrastructure installation works and completion of various stages of
work on the FPF-1.
Additional Information
An updated corporate presentation is available on the Company's
website, www.ithacaenergy.com . The presentation includes a production
and cashflow outlook for the years 2013-15.Specific guidance for the
years 2014 and 2015 will be provided at the start of each of these
years.Shareholders should note that cashflows from operations
includes the impact of executed hedges and does not include non-cash
items such as depreciation, depletion and amortisation ("DD&A"),
revaluation of financial instruments, impairments of fixed assets and
movements in goodwill, each of which may have a significant impact on
the Company's profit.
The Company intends to publish its full year 2012 accounts and year-end
reserves, as evaluated by Sproule International Limited, on 26 March
2013.
Enquiries:
Ithaca Energy:
Iain McKendrick, CEO imckendrick@ithacaenergy.com
+44 (0) 1224 650 261
Graham Forbes, CFO gforbes@ithacaenergy.com
+44 (0) 1224 652 151
FTI Consulting:
Billy Clegg billy.clegg@fticonsulting.com
+44 (0) 207 269 7157
Edward Westropp edward.westropp@fticonsulting.com
+44 (0) 207 269 7230
Georgia Mann georgia.mann@fticonsulting.com
+44 (0) 207 269 7212
Cenkos Securities plc:
Jon Fitzpatrick jfitzpatrick@cenkos.com
+44 (0) 207 397 8900
Ken Fleming kfleming@cenkos.com
+44 (0) 131 220 6939
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 to oil and gas disclosure:
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.
About Ithaca Energy:
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly owned
subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"),is an
oil and gas operator focused on North Sea production, appraisal and
development activities. The Company's strategy is centred on building
a highly profitable North Sea oil and gas company by maximising
production and cashflow from its existing assets, the appraisal and
development of existing discoveries on properties held by the Company
and the delivery of additional growth via acquisitions and licence
round participation.
Not for Distribution to U.S. Newswire Services or for Dissemination
in the United States
Forward-looking statements
Some of the statements in this announcement are forward-looking.
Forward-looking statements include statements regarding the intent,
belief and current expectations of Ithaca Energy Inc. or its officers
with respect to various matters.When used in this announcement, 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, production forecasts, budgetary figures
contained in the corporate presentation, 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 and uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements or information.These forward-looking
statements speak only as of the date of this announcement.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.
-ENDS-
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