Hot Features
Premium
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Oil and gas explorer and producer Ithaca Energy (LSE:IAE) announced Monday, the “successful” commencement of oil production from the Athena Field in the UK Continental Shelf, welcomed by its joint venture partners, Trap Oil Group (LSE:TRAP) and Lochard Energy Group (LSE:LHD).
“The initial operations phase of the field is in line with management’s expectations and proceeding as planned,” Ithaca Energy said in a statement released on 28th May 2012.
“This involves bringing production from each well online and establishing stable performance of the oil processing and water injection systems.”
In a statement released subsequently after Ithaca Energy’s, Trap Oil Group, which agreed to acquire 15% working interest in the field on 16th March 2012, from Dyas UK Limited, another party to the Athena Field joint venture, said the development “great news” and is “most encouraging”.
Trap Oil Group’s Chief Executive Officer Mark Groves-Gidney said, however, their production target is more modest than Ithaca Energy’s.
“Our estimated production profile for Athena is currently lower than Ithaca Energy’s due to a more conservative unaudited estimate of the reserve base by Trapoil’s management,” the CEO commented.
Athena Field
The Athena Field, located 180 miles northeast of Aberdeen, Scotland, has estimated 2P reserves of 26.1 million barrels of oil, targeted to produce 22,000 barrels of oil per day.
Ithaca Energy holds the operatorship of the field 22.5% working interest, with Dyas UK Limited holding 47.5%, EWE Energie AG for 20% and Zeus Petroleum Limited at 10%.
On 19th March 2012, Trap Oil Group agreed to acquire 15% working interest in the field from Dyas, for £34.5 million, subject to government’s and partners’ approvals.
Completion of the sale is set to the second quarter of 2012 for the initial 10% and the remaining 5% by 31st October 2012.
Lochard Energy Group holds the beneficial ownership of the 10% interest of Zeus Petroleum, as the former’s 100% wholly-owned subsidiary.
Company Comments
Ithaca Energy said the company will issue further announcement once production rate has been stabilised.
The UK Continental Shelf-focused company expressed gratitude to all the stakeholders, saying:
“The Company, on behalf of all the Athena field co-venturers, thanks all the individuals and companies that have contributed to this significant milestone in the development of the field.”
Company Spotlight
Established in Canada in 2004, Ithaca Energy is focused on exploration, development, and production of oil in gas in the UK North Sea.
Trading on the Alternative Investment Market since 2006, shares of Ithaca Energy moved 0.1% to 177.25 pence a share, following the news.
Trap Oil Group, incorporated in 2007 and listed on AIM in 2011, went up 5.8% to 27.5 pence a share, in early morning trading in London.
References
↑ Athena Oil Field Overview
↑ Athena Development Overview
↑ Ithaca Energy Company Overview
↑ Trap Oil Group Overview
