Thursday 27 August 2020

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) (“Ithaca” or the “Company”) is pleased to announce its financial results for the six months ended 30 June 2020 (“H1-2020”).

Highlights

Strong operational performance with limited disruption arising from Covid-19 related restrictions

Production of 73 thousand barrels of oil equivalent per day (“kboe/d”), 61% liquids, during the first six months of 2020 (“H1-2020”)

Forecast 2020 production anticipated to be at the top end of the 63-68 kboe/d guidance range

Unit operating costs of $15/boe in H1-2020, down from $17/boe pro-forma 2019 unit operating expenditure

H1-2020 EBITDAX of $398 million, including realised commodity hedging gains of $220 million

During H1-2020 the company re-set the majority of its 2021/22 oil hedges, maintaining underlying hedge volumes with swaps at the prevailing forward curve – as a result, in addition to the EBITDAX of $398 million, $155 million of cash flow has been accelerated into H1-2020

23 million barrels of oil equivalent (68% oil) hedged from the start of July 2020 into 2022 at an average price floor of $51/bbl oil and 49p/therm gas after reflecting the impact of the re-set

Net debt at 30 June 2020 was $1.3 billion, down from $1.55 billion at year-end 2019

H1-2020 results include the $795 million post-tax non-cash impairment included in the Q1-2020 financial results

Decisive actions taken at the start of the year to manage the Covid-19 pandemic and sharp fall in oil prices – forecast 2020 capital expenditure halved to approximately $125 million and unit operating expenditure reduced by approximately 15% to $15/boe

Measures being taken to recommence some of the deferred investment programmes, with capital expenditure forecast to be in the range of $125 to $135 million.

Taking into account solid year to date operational performance, full year 2020 production is anticipated to be towards the top end of the guidance range of the 63-68 kboe/d issued when the potential impact of Covid-19 restrictions were incorporated into the outlook

Mid-year independent reserves evaluation completed with proven and probable reserves (“2P”) and resources (“2C”) broadly unchanged at 258 million barrels of oil equivalent (“MMboe”), after taking into account production in H1-2020, despite a reduction in forecast future commodity prices