Ithaca Energy Share Discussion Threads

[steve73] 24/3/2017 02:19

They said in the report that the wells were heavily choked to provide just enough gas to commission the compressors, and due to problems with these, that they would remain choked so as not to excessively flare the associated gas.

Compression problems are the bane of offshore field development.... I was involved in helping to identify & resolve many compression problems across the NS (& elsewhere) during the late 90's & early 00's - it seems the industry hasn't learnt much over the years...!

Re. the point on gas:oil ratio - need to be very careful of the units being quoted.... scf/bbl or m3/m3. Also any reference to gas flows through the compressors are likely to include significant recycling so as to keep flaring to a minimum. I'd need to read the transcript to fully understand what they're actually saying.

[bountyhunter] 23/3/2017 17:21

yes O&G, the usual 'Outlook' statement was conspicuous by it's absence as they might have had to put a positive spin on things in there especially wrt...

- Average production in 2017 is anticipated to be in the range of 19,000 to 22,000 boepd

- Forecast 2017 unit operating expenditure is anticipated to be approximately $18/boe, reflecting the anticipated positive impact on unit costs of Stella field production.

- The Company's commodity hedging position remains unchanged since the start of 2017. As of the start of this year the Company has 7,600 boepd (85% oil) hedged at an average floor price of $50/boe for the 18 months to 30 June 2018. Full commodity price upside exposure has been retained on 60% of the volumes hedged and upside exposure to $60/boe has been retained on a further 25% of the hedged volumes.

- UK tax allowances pool of over $1,700 million at 31 December 2016. At current commodity prices, the pool is forecast to shelter the Company from the payment of corporation tax over the medium term.

- acceleration of the GSA oil pipeline installation operations

- Harrier field development programme underway - development drilling to be completed in 2017, with start-up of production expected in the second half of 2018

- Ithaca's joint operations as at 31 December 2016:

Block Licence Field/Discovery Operator IAE%net Country
----------------------------------------------------------------
2/4a P902 Broom EnQuest 8.00 UK
2/5 P242 Broom EnQuest 8.00 UK
14/18b P1293 Athena Ithaca 22.50 UK
21/20a P185 Cook Ithaca 61.35 UK
29/10b P1665 Hurricane Ithaca 54.66 UK
29/10a (upper) P011 Stella/Harrier Ithaca 68.33 UK
30/6a (Upper) P011 Stella/Harrier Ithaca 68.33 UK
48/18b P128 Anglia Ithaca 30.00 UK
48/19b P128 Anglia Ithaca 30.00 UK
48/19e P1011 Anglia Ithaca 30.00 UK
49/2a P1013 Topaz RWE 35.00 UK
9/28a D P209 Crawford EnQuest 29.00 UK
211/18b A P236 West Don EnQuest 17.28 UK
211/18a B P236 SW Don EnQuest 40.00 UK
211/22a B P201 Fionn Ithaca 100.00 UK
211/23d P1383 Causeway Ithaca 64.50 UK
23/22a P111 Pierce Shell 7.48 UK
98/6,98/7 P.534 Wytch Farm Perenco 7.42 UK
SY/88b,SY/98a,SZ/8a PL089 Wytch Farm Perenco 7.42 UK
211/18e, 211/19c P2137 Ythan EnQuest 40.00 UK

[husbod] 23/3/2017 16:28

I haven't accepted fwiw

[oilandgas1] 23/3/2017 16:09

Debt as at dec16 = 598m

Debt at Mar17 = 615m

We need Stella prod to rise to 22kbopd asap for debt to start to reduce - refinancing also coming..
"As previously guided, average production in 2017 is anticipated to be in the range of 19,000 to 22,000 boepd (approximately 75% oil)"

Wrt the board comments (lack of) on future potential and value not mentioned anywhere which would drive the share price (imho) from 1.20 to 1.60 this year ( assuming Poo above 55$), norpipe, 5 wells drilled, reduced cost base, vorlich, Austen and harrier fields.

[loafingchard] 23/3/2017 12:59

Net debt down as expected.

Plus :

" The Company had a UK tax allowances pool of over $1,700 million at 31 December 2016"

That will shelter IAE from paying corporation tax for quite some time. Let's have some tasty cash flow, enjoy the fruits of the GSA development. Christ we've waited long enough !

[loafingchard] 23/3/2017 12:53

I won't be accepting the offer that's for sure, no advice intended. I believe we are currently worth 150p+ . Going forward the valuation will only increase even if the POO remains range bound, IMHO .Good luck holders

[bountyhunter] 23/3/2017 12:12

Dozey3 - agree 100%, as far as risks are concerned Delek took < 20% of the risk but now want 100% payback!

[dozey3] 23/3/2017 10:35

Absolutely nothing in the report supports the Dalek offer. Of course there are risks, we knew that when we invested and now future success looks highly probable the board want to take it from under our noses.
Costs down' production up, and increasing'; hedges in place; Harrier to come. No way am I giving in to highway robbery.

[bountyhunter] 23/3/2017 08:21

lol, pretty much as anticipated then speedsgh, the only thing that does surprise me is that they didn't actually capitalise that in the RNS! ;-)

however

"Forecast 2017 unit operating expenditure is anticipated to be approximately $18/boe, reflecting the anticipated positive impact on unit costs of Stella field production."

which is pretty good with much of production hedged at a floor price of $50/b maintaining upside exposure

"The Company's commodity hedging position remains unchanged since the start of 2017. As of the start of this year the Company has 7,600 boepd (85% oil) hedged at an average floor price of $50/boe for the 18 months to 30 June 2018. Full commodity price upside exposure has been retained on 60% of the volumes hedged and upside exposure to $60/boe has been retained on a further 25% of the hedged volumes."

[speedsgh] 23/3/2017 08:06

Les Thomas, Chief Executive Officer, commented:
"...Having reached this important milestone and after weighing up the potential risks and opportunities that lie ahead, the Board considers the takeover offer tabled by Delek as providing full value to shareholders and WHOLEHEARTEDLY recommends its acceptance." [said he while rubbing his hands with glee at the riches he hoped to be receiving in the short term at the expense of other shareholders]

[bountyhunter] 22/3/2017 14:02

hashertu - surely any extension would be from the 20th April as that's Delek's closing date - I don't know if it's 10 calendar or business days but seems plenty long enough to me especially if the response is over the internet as is normally the case now

[ziblot] 22/3/2017 14:00

No point in selling Iae in the market unless for this years tax reasons. The share price is being marked down due to quote , "the massive buildup in U.S. crude stockpiles?"
Investors probably realised as a lot of buying now taking place.

[hashertu] 22/3/2017 13:49

BB. Thanks. I had only looked at the director's circular.

Are these calendar days, or working business days?
I ask because the latest time that I can respond to the Halifax to accept the offer is 23:59, April 12 for a bid deadline in Canada of 5pm, April 20. So 8 days before.
If the extension is applied, I wonder if there is enough time for my broker to respond.

[ziblot] 22/3/2017 13:23

Selftrade this morning, "no later than 5pm 12th. April"

[bountyhunter] 22/3/2017 13:20

hashertu - see post 19903

also the takeover bid circular on the Ithaca website:
(it's right at the top in red and elsewhere)

[hashertu] 22/3/2017 13:09

Bounty hunter. Post 19931. You say,

"If Delek do achieve > 50% acceptances for their paltry offer re the shares not owned by them then they have said they will extend the offer by 10 days so I will reconsider the situation at that point if necessary."

Can you please show me where Delek have made this offer to extend by 10 days?

[dozey3] 22/3/2017 12:19

Buy Curious: completely agree, we would need a clear out.
edmundshaw: please share the name of your stockbroker with us. It could be interpreted as them rating their convenience above your interests.

Needless to add, I shall not be accepting and also look forward to how they spin the results.

[edmundshaw] 22/3/2017 10:41

I doubt there will be a wholesale resignation of the board if they don't get the acceptances they need.

I agree there is no point in selling, and was disappointed that my stockbroker suggested I should act "as soon as possible" here. The reverse seems the sensible option, keeping ones options open till the last minute. And as bountyhunter says, we are anyway almost certain to get a second bite at the cherry if the offer gets accepted and we don't want to hold on.

[buy curious] 22/3/2017 09:36

If this offer is refused, as i suspect it will be, then surely that will make the board members positions untenable?

and a new trustworthy board will be appointed to take the company onwards and upwards?