Ithaca Energy Q1-2017 Financial Results
Monday 15 May 2017
Greater Stella Area Development
Stella
Following first hydrocarbons from the Stella field in mid-February 2017, operational activities on the FPF-1 have been centred on completion of the dynamic commissioning programme required on the gas processing systems on the vessel. During this programme, oil production continues to be maintained at constrained rates in order to minimise gas flaring. The oil processing facilities on the FPF-1 have been performing well and an initial cargo of approximately 235,000 barrels of oil was exported via shuttle tanker from the field in April 2017. Oil production to date from the field has been limited to approximately 1,900 boepd net to Ithaca.
Dynamic commissioning activities on the gas processing facilities are now well advanced. The first of the two gas export compressors has been fully commissioned, with initial gas exports into the CATS pipeline system achieved in late April 2017, and commissioning of the second export compressor has also been materially completed. Gas exports have temporarily been suspended until replacement of the drive motors on the FPF-1 sea water lift pumps that provide cooling for the gas processing systems has been completed. As a consequence, it is forecast that gas exports from the first compressor will recommence later this month, stepping up to full production rates in early June 2017 once commissioning of the second export compressor is completed.
Once both gas export compressors are fully operational, Stella remains forecast to add approximately 16,000 boepd net initial annualised production to the Company’s asset portfolio.
Harrier Development
Development drilling on the Harrier field commenced as planned in April 2017. The ENSCO 122 heavy duty jack-up rig is being used to drill a multilateral well into the two reservoir formations on the field, with the well scheduled for completion in the second half of 2017.
The Harrier well is to be tied back via a 7.5 kilometre pipeline to an existing slot on the Stella main drill centre manifold for onward export and processing of production on the FPF-1. The subsea infrastructure installation activities are scheduled for summer 2018, resulting in the anticipated start-up of Harrier production in the second half of 2018.
Austen Discovery
The Company entered into a sales and purchase agreement with Premier Oil E&P UK Limited in May 2017 to acquire its 25% interest in licence P1823 (Block 30/13b) for a nominal consideration. The licence contains the Ithaca-operated Austen discovery. The transaction, which is effective as of 1 January 2017 and expected to complete in the second half of 2017, will result in the Company being the sole owner of the licence. The Austen discovery is located approximately 30 kilometres south-east of the Greater Stella Area hub.