TIDMIAE
Athena Operations Update and Second Quarter 2012 Production
FOR: ITHACA ENERGY INC.
TSX, AIM SYMBOL: IAE
June 25, 2012
Ithaca Energy Inc.: Athena Operations Update and Second Quarter 2012 Production
LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - June 25, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ithaca Energy Inc. (TSX:IAE)(AIM:IAE) announces an Athena field operational update and anticipated second
quarter 2012 outturn production information.
Athena Operations Update: The operational programme since start-up has been focused on achieving full and
stable production from the four production wells and processing plant on the BW Athena floating production,
storage and offloading vessel ("FPSO") and assessing the potential of the wells and the optimal production
rates for the maximisation of oil recovery from the field over the coming years. The execution of these
operations has progressed as planned. All the production facilities are now fully commissioned and the BW
Athena is operating as designed, with continued well optimisation activities ongoing. The first cargo of crude
has been transferred from the FPSO to the storage tank at the Ithaca operated Nigg oil terminal using the Betty
Knutsen shuttle tanker.
Currently only three of the four production wells on the field are flowing as a result of a suspected downhole
restriction in one of the wells. Testing has shown that there are no issues with the integrity of the well or
performance of the reservoir in the area of the field drained by the well. The changeable flow rates achieved
from the well during testing indicate that the restriction is likely attributable to a blockage in the
production tubing located within the well. Diagnostic work is ongoing to identify the nature of the blockage
and the most effective course of action for eliminating it.
Gross production from the field is currently approximately 12,000 barrels of oil per day ("bopd"), 2,700 bopd
net to Ithaca with three producing wells. Meanwhile, water injection is online to support the production wells.
Based on the data obtained, the gross production potential of the restricted well is approximately 5,000 bopd,
1,125 bopd net to Ithaca.
The Company is currently evaluating remote intervention methods to restore the restricted well to its full
production potential. This includes use of the existing facilities to hydraulically overcome the obstruction.
If these methods are not successful, a rig based workover may be required. In that case, the workover is
anticipated to be conducted towards the end of this year.
The co-venturers in the Athena field are: Ithaca, operator (22.5%), Dyas UK Limited (47.5%), EWE Energie AG
(20%) and Zeus Petroleum Limited (10%).
Second Quarter 2012 Production
The Company's total net export production in the second quarter of 2012 ("Q2-2012") is anticipated to be
370,888 barrels of oil equivalent, representing a net average rate of 4,076 barrels of oil equivalent per day
("boepd") for the quarter. The Company's export production volumes came from the operated Beatrice, Jacky,
Anglia and Athena fields and the non-operated Cook, Broom and Topaz fields.
=- The Beatrice and Jacky fields have experienced downtime in Q2-2012 as a
result of activities to improve the treatment of produced water. These
works are now complete and stable production has been restored.
=- The Cook field experienced downtime in April and June due to integrity
issues with the gas treatment and compression equipment on the host
facilities. Full production will be restored during the first week of
July.
=- The Q2-2012 production contribution from the Athena field, as would be
expected, has been limited as a result of the facilities commissioning,
production stabilisation and optimisation activities that have been
ongoing since start-up of the field on May 26th, 2012.
The Company's current net daily export production rate potential is approximately 7,200 boepd not including the
expected production of the restricted Athena well. This rate will be achieved as soon as the Cook field returns
to production in early July.
It should be noted that planned maintenance shutdowns are scheduled for the third quarter of this year on the
Company's operated Beatrice Area infrastructure (approximately 20 days) and the Shell operated Anasuria FPSO
that receives production from the Cook field (approximately 50 days) to complete scheduled asset integrity
works designed to maintain the longer term operating efficiency of the facilities.
Notes to oil and gas disclosure:
In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and
senior petroleum engineer at Ithaca is the qualified person that has reviewed the technical information
contained in this press release. Dr Morel has 30 years operating experience in the upstream oil industry.
The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based
on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.
About Ithaca Energy:
Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is
an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf
("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the
development of existing discoveries on properties held by Ithaca, to originate and participate in exploration
and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth
as they are identified from time to time by Ithaca.
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 production and operation activities of the Athena field, the
Company's other fields 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.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Ithaca Energy:
Graham Forbes
CFO
+44 (0) 1224 652 151
gforbes@ithacaenergy.com
OR
Ithaca Energy:
John Woods
CDO
+44 (0) 1224 650 273
jwoods@ithacaenergy.com
OR
Pelham Bell Pottinger Public Relations:
Philip Dennis
+44 (0) 207 861 3919
pdennis@pelhambellpottinger.co.uk
OR
Pelham Bell Pottinger Public Relations:
Rollo Crichton-Stuart
+44 (0) 207 861 3918
rcrichton-stuart@pelhambellpottinger.co.uk
OR
Cenkos Securities plc:
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com
OR
Cenkos Securities plc:
Beth McKiernan
+44 (0) 131 220 6939
bmckiernan@cenkos.com
OR
RBC Capital Markets:
Tim Chapman
+44 (0) 207 653 4641
tim.chapman@rbccm.com
OR
RBC Capital Markets:
Matthew Coakes
+44 (0) 207 653 4871
matthew.coakes@rbccm.com
Ithaca Energy Inc.
|
