Ithaca Energy Share Discussion Threads

[spangle93] 13/6/2019 11:14

I did very well from IAE - having bought at around 44p, all shares were sold at multiples of that, but they were very optimistic with their GSA project targets.

I'm SQZ (having been from 70p to 3p and back to 140p) and in HUR, but not with any significance, hoping for a take out of the ones I haven't sold. My belief is that they hit the market perfectly with the timing of the AM, landing up in the yard when there was little else to compete for the A team or get in the way of good productivity. I feel I can sleep much more soundly with SQZ though.

But I wasn't ever in EEN - you're perhaps thinking of GPX, where I actually still hold a few shares, hoping for the day when life returns to normal in Syria. What a human tragedy that has been.

The one you haven't mentioned (because most stocks have been North Sea based) is JSE, which has the same business model but in the Far East, and which like SQZ is throwing off cash. Holding that for 5 years will (I believe) be as lucrative as IAE was

[bountyhunter] 13/6/2019 10:38

Any combination of SQZ, RRE, IOG could be a good fit, but would definitely like to see RRE relisted first! HUR would need a major for a takeout but too early yet I think seems to be the concensus.

[farmscan] 13/6/2019 10:16

Likewise. HUR and SQZ are my biggest holdings, although I hope Serica remains independent for a few years. If the take over is at the right price(!), it removes the 'when to sell' decision, so I generally prefer that scenario.

[bountyhunter] 13/6/2019 10:04

No not in EEN but was in VPC before IAE, then FPM, all four now taken over! Hoping for a repeat performance with HUR!

[farmscan] 13/6/2019 09:58

bounty, were you in Emerald? I know cfc was and I think Spangle was. It was at that time I bought into Serica. A lot of the EEN proceeds went here, so like many I was gutted by the 'deal'! But I'm sure the board considered it to be the right thing to do.

[bountyhunter] 12/6/2019 20:34

just bored with the HUR thread right now and noticed Spangle's update here lol :)

[captainfatcat] 12/6/2019 20:23

wondered what the activity was 8-)

[bountyhunter] 12/6/2019 20:01

Yes irritating isn't it! Same CEO as well.

[spangle93] 30/5/2019 07:27

Where would we be now, sigh

[rich73] 24/8/2018 23:57

Saw that too and Petrofac even took an impairment on that price. Robbed we was, but thems the fish we get thrown at the bottle of the barrel.

[speedsgh] 24/8/2018 12:10

GSA Acquisitions -

Ithaca Energy Limited (IAECN: ISINs US465676AA22 / USC48677AA34) (the "Company") announces it has entered into agreements to acquire all the Greater Stella Area ("GSA") licences and associated infrastructure interests of Dyas UK Limited ("Dyas") and Petrofac Limited ("Petrofac"). The acquisition materially increases the Company's production and reserves base, while simultaneously delivering full control and flexibility over the long term development of the GSA production hub.

As a result of the transactions, the Company's pro-forma 2018 production is forecast to increase by approximately 50% to 22,000 barrels of oil equivalent per day, with pro-forma 2018 unit operating costs forecast to reduce to approximately $18 per barrel of oil equivalent.

Based on the most recent independent reserves evaluation performed by Sproule International Limited ("Sproule"), the transactions are estimated to increase the Company's proven and probable ("2P") reserves as of 31 December 2017 by over 20 million barrels of oil equivalent.

The effective date of the acquisition is 1 January 2018 ("Effective Date"), with the consideration paid at completion being subject to conventional adjustments to reflect the income and costs associated with the assets since the Effective Date. The transactions are expected to complete around the end of 2018 and are subject to customary regulatory approvals.

In aggregate, the transaction consideration reflects payments associated with the acquisition of the assets of $190 million and a revision and rescheduling of Ithaca's existing $140 million deferred payments to Petrofac that resulted from completion of the "FPF-1" modifications programme and the Company's accrual of associated capital allowances.

In summary, the consideration payable comprises an initial payment at completion of the transaction, which is forecast to total approximately $130 million (net of estimated interim period cashflows of $80 million), plus deferred payments of $120 million payable over the period 2020 to 2023. Dependent on the future performance of the Stella and Harrier fields, Petrofac also has the opportunity to earn up to an additional $28 million by 2023.

The transaction is to be funded from an increased and extended RBL facility...

[bountyhunter] 24/8/2018 11:39

A similar scenario is now playing out at FPM but with a stronger BoD!

[bountyhunter] 09/5/2018 16:17

if only the BoD hadn't caved in I think the share price would now be significantly higher!

[speedsgh] 09/5/2018 14:04

Q1 2018 Financial Results -

Ithaca Energy Inc. (IAECN: ISINs US465676AA22 / USC48677AA34) ("Ithaca" or the "Company") announces its financial results for the three months ended 31 March 2018 ("Q1-2018" or the "Quarter").

Solid cashflow generation, with improving cash netbacks

· Average Q1-2018 production of 18,165 barrels of oil equivalent per day ("boepd") - a 95% increase on Q1-2017 driven by a full quarter's contribution from the Stella field and consistent performance across the base producing asset portfolio

· Unit operating expenditure reduced to $18/boe1, a $3/boe or 14% reduction on Q1-2017

· Cashflow from operations of $47 million1, equating to $29/boe

· Earnings of $5 million

· Downside commodity price hedging extended - 4,600 barrels of oil per day ("bopd") for the 24 months to March 2020 at an average floor price of $59/bbl and 2,000 boepd of gas at 46p/therm to June 2019

· Net debt reduced to $554 million at 31 March 2018

Refinancing of the Company's debt facilities underway

· Proactively addressing the existing debt maturity profile, while simplifying the capital structure and significantly enhancing liquidity

· Reserves Based Lending ("RBL") facility to be extended and increased to $350 million, enabling retirement of the $140 million Term Loan. The existing $100 million Delek Parent Loans will be replaced with a $100 million Subordinated Shareholder Loan (ranks with equity), resulting in a pro-forma reduction in net debt at end Q1-2018 to $454 million2

Increasing 2018 production and cashflow generation

· Average 2018 production forecast to be approximately 15,000 boepd, reflecting the divestment of the Wytch Farm field, the anticipated start-up of the Harrier field in mid-2018 and planned maintenance shutdowns being undertaken during the year

· 2018 unit operating expenditure forecast to average approximately $19/boe1 - underpinning strong cash netbacks that are sheltered from tax by the Company's approximately $1.8 billion UK tax allowances pool

Greater Stella Area ("GSA") "hub and spoke" strategy progressing to plan

· GSA production hub fully operational - strong "FPF-1" uptime performance being achieved

· Completion of Harrier field development activities progressing ahead of schedule - only tie-in of the Harrier infield pipeline to the existing GSA facilities remaining prior to start-up in mid-2018

· Planning underway for drilling of a potential Stella infill well in 2019 to maximise reserves recovery from the field

· Vorlich development sanctioned and progressing to plan - field to be tied back to the FPF-1 with work underway to deliver start-up of production in 2020

Strategic focus on growing the business with the support of Delek Group ("Delek")

· Ithaca represents a core component of Delek's strategy to grow its international E&P business - strong shareholder with ambition to expand its North Sea business using the established platform and expertise of Ithaca

· Corporate strategy remains unchanged following the takeover - focus on the delivery of lower risk production and development-led growth and further expansion of the asset portfolio while maintaining a robust low-cost capital structure

Les Thomas, Chief Executive Officer, commented:

"We are pleased to announce a strong set of first quarter financial results, driven by solid operating performance across the portfolio. We continue to make good progress in extending the GSA production hub, with the remaining Harrier development activities running ahead of schedule and start-up of the field anticipated mid-2018. Refinancing of our debt facilities is well underway and set to deliver a material reduction in net debt, along with significantly enhanced liquidity and financial flexibility for the future."

[speedsgh] 09/5/2018 14:02

Senior Notes Offering -

Ithaca Energy Inc. (IAECN: ISINs US465676AA22 / USC48677AA34) ("Ithaca" or the "Company") announces that its wholly-owned subsidiary Ithaca Energy (North Sea) plc (the "Issuer") intends to offer $350 million in aggregate principal amount of senior notes due 2023 (the "Notes"). The Notes, whose net proceeds will be used (together with cash on hand) to redeem in full the Company's senior notes due 2019, repay certain existing indebtedness and to repay drawings under the Company's existing reserves based lending facility, will be senior obligations of the Issuer and will be guaranteed on a senior basis by the Company and on a senior subordinated basis by certain of the Company's subsidiaries. Interest will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.

[speedsgh] 09/5/2018 14:01

2017 Financial Results -

[bountyhunter] 10/4/2018 20:33

Well spotted Rich, for me at least FPM has provided some compensation for the game-over stitch-up here!

[rich73] 10/4/2018 20:05

With stella online, the Saudis looking $80 oil and vorlich going to development with a major, I wonder what the share price would have been! :-(

[rich73] 10/4/2018 20:03

More proof of the stitch. Dalex developing the IAE pipeline of assets with BP at Vorlich.

BP to drill 2 new North Sea fields
By Ian Walker

Published: Apr 10, 2018 8:01 a.m. ET






BP PLC (BP.LN) said Tuesday that it will drill two new North Sea developments which are expected to come on stream in 2020, and to have peak production of 30,000 barrels of oil equivalent per day gross.

The oil major said Alligin and Vorlich are satellite fields located near to existing infrastructure, meaning they can be quickly developed through established offshore hubs.

BP has a 50% interest in Alligin and is operator while Royal Dutch Shell PLC RDSB has the other 50%. BP is also operator of Vorlich with a 66% interest, while Ithaca Energy has the remaining share.

Write to Ian Walker at [e-mail]; @IanWalk40289749

[bountyhunter] 04/4/2018 20:34

Really glad to see the back of Delek as far as my investments are concerned, FPM up 12% today on their exit :~)

Interesting news from the purchasers of Delek FPM stock throughout today and later the response from FPM:

[farmscan] 04/4/2018 11:47

They presumably have their eyes on a bigger prize than Faroe.

[farmscan] 04/4/2018 11:44

So it will be interesting to see where Delek are of to now.

[bountyhunter] 04/4/2018 10:41

Delek holding bought out from FPM today.

[bountyhunter] 03/4/2018 12:06

Certainly stitched up yes; looking for some compensation with FPM! ;~)