Ithaca Energy: Q2 production in line with expectations

Ithaca Energy Inc. has provided a production update following the end of the second quarter of the year (“Q2-2014”).

Average pro-forma production in Q2-2014 was approximately 14,400 barrels of oil equivalent per day (“boepd”), 94% oil, including the contribution from the assets being acquired from Sumitomo Corporation (the “Summit Assets”).

Ithaca says that this performance is in line with the Company’s pro-forma 2014 production guidance range of 13,500 to 15,500 boepd.

– Production in Q2-2014 excluding the Summit Assets was approximately 11,900 boepd, in line with the 2014 guidance range of 11,000 to 13,000 boepd for the Company’s existing assets.

– Production in Q2-2014 for the Summit Assets was calculated to be approximately 2,500 boepd, based on available operator data, in line with the forecast 2014 pro-forma production guidance for the acquired assets.

While the Company derives the economic benefit of production from the Summit Assets from the acquisition effective date of 1 January 2014, these assets will not be consolidated into Ithaca’s financial statements until the transaction completion date, which is expected to occur in the third quarter of 2014 (“Q3-2014”).

As previously guided, 2014 production volumes are forecast to be weighted towards the second half of the year, notably from the later part of Q3-2014 post the completion of planned summer maintenance shutdowns, as a result of the following activities:
– Start-up of the Don Southwest “TJ” infill well, drilling of which has recently been completed, and incremental production resulting from chemical treatments on a number of other wells on the field.
– Production optimisation and resolution of operational matters in the Causeway Area, including the start of water injection.
– Re-start of production from the Pierce field following completion of the on-going modification works being performed on the field’s floating production, storage and offloading vessel to enable tie-in of a third party field.
– Completion of the planned well workover on the Athena field, for which the rig is scheduled to arrive on location at the field in August 2014.

The Company is scheduled to release its Q2-2014 financial results on the 12 August 2014.