Ithaca Energy Expects Stella Field To Double Oil Production In 2017

LONDON (Alliance News) - Ithaca Energy Inc on Thursday said its production for 2016 outpaced its ...

Alliance News 12 January, 2017 | 9:31AM
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LONDON (Alliance News) - Ithaca Energy Inc on Thursday said its production for 2016 outpaced its guidance and said its production of oil and gas is expected to more than double in 2017 thanks to the start-up of the Stella oil field in the North Sea.

Ithaca's average production for 2016 was 9,300 barrels of oil equivalent per day, ahead of the company's guidance of 9,000 barrels a day.

First oil from Stella is expected in February, with electrical junction box inspection and remediation work nearing completion at the project.

Thanks to the start-up at Stella, which was delayed by the junction box repair work from an original targeted start date of the end of November 2016, Ithaca expects production in 2017 will more than double to between 19,000 boepd and 22,000 boepd.

Ithaca also expects its operating costs to fall to around USD18.00 per barrel of oil equivalent, down around 30% on its costs in 2016 thanks to the impact of the low-cost Stella project on its overall production portfolio.

Ithaca expects its capital expenditure for the year to be around USD70.0 million, mainly centred on Stella but also including development drilling at the Harrier field, which is also in the Greater Stella Area in the UK North Sea. Development drilling on Harrier is expected to complete in 2017, with production start-up targeted for the second half of 2018.

"The company moves into 2017 in good health, with increasing cashflow, continued deleveraging and the launch of the low-cost Harrier satellite development," said Ithaca Chief Executive Les Thomas.

Shares in Ithaca were down 0.5% to 100.22 pence on Thursday.

By Sam Unsted;; @SamUAtAlliance

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