Ithaca Announces GSA Development Update (UK)

Ithaca Energy provides an update on the progress made with its Greater Stella Area (“GSA”) development activities and schedule.

Highlights

– The modifications contract for the “FPF-1” floating production unit has been awarded to the Remontowa shipyard in Gdansk, Poland. The FPF-1 is now located In Gdansk.

– The Ensco 100 drilling rig is now forecast to commence the development drilling campaign in Q1-2013, due to delays in the completion of drilling programmes for other operators.

– Four initial Stella wells are to be drilled over a period of approximately twelve months prior to the arrival of the FPF-1 for hook-up and commissioning, currently anticipated in H1-2014.

– Detailed design has been completed for the subsea infrastructure that is to be installed in 2013 by Technip, a world leader in the execution of subsea projects. Fabrication of the required linepipe is underway.

– A suite of gas transportation and processing agreements has been executed for export of gas processed on the FPF-1 via the Central Area Transmission System (“CATS”) and Teeside Gas and Liquids Processing (“TGLP”) terminal.

– The Company’s net share of remaining capital expenditure prior to first hydrocarbons from the GSA production hub is $395 million, which will be funded from existing financial resources.

– The successful appraisal of the Hurricane discovery in Q3-2012 and the offer of Block 29/5e, adjacent to Hurricane, in the 27th UK Offshore License Round in October 2012, have further augmented the opportunity set for the GSA hub.

– The Company’s partners in the GSA are Dyas UK Limited, a long established privately owned North Sea oil and gas producer, and Petrofac, a leading international service provider to the oil and gas industry listed on the FTSE 100 in London.

Iain McKendrick, Chief Executive Officer, commented: “This is exciting progress towards the creation of a 25kboe/d North Sea oil and gas operator and unlocks substantial value by monetising over 30Mboe of the Company’s reserves base. We are pleased with the significant milestones achieved by all the major service providers to this development. The Company is firmly focused on executing the project safely and efficiently and creating further long term value by building upon its position in the GSA.”

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Press Release, November 12, 2012