Ithaca Energy Inc- Third Quarter Operations Update ABERDEEN, SCOTLAND -- (Marketwired) -- 10/15/13 -- *T (TSX VENTURE: IAE) (LSE: IAE) Not for Distribution to U.S. Newswire Services or for Dissemination in the United States Ithaca Energy Inc. Third Quarter Operations Update 15 October 2013 Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") provides an update on third quarter 2013 ("Q3-2013") operational activities, including recent key milestones achieved on the Greater Stella Area ("GSA") development and production performance. The Company's Q3-2013 financial results are scheduled to be published on 11 November 2013. Highlights * The dry dock related marine system works on the "FPF-1" floating production facility have been completed and the vessel has been returned to the water. * The 60km gas export pipeline has now been fully installed and is ready to receive gas upon the start-up of production from the GSA hub. Operations to install the infield flexible flowlines and static umbilicals have commenced. * Drilling operations are on-going and progressing to plan on the Stella "A2" development well. * Net average export production in Q3-2013 was approximately 12,000 barrels of oil equivalent per day ("boepd"), 96% oil, reflecting the impact of the previously advised shutdowns during the quarter. * Production from the Cook field has recently been reinstated following completion of infield flowline inspection works.The planned six week shutdown of the host facility for the Causeway Area fields is forecast to be completed around mid-October 2013, slightly behind the original schedule.A key remaining risk to full year production relates to the timely completion of this shutdown and the follow on platform modifications required to enable start- up of the electrical submersible pump package on the Causeway field. Greater Stella Area Development Update FPF-1 Modifications Programme Petrofac has recently completed the dry dock related marine system refurbishment and hull life extension works on the FPF-1 in the Remontowa shipyard in Gdansk, Poland, and the vessel has now been successfully refloated.This marks a major milestone in execution of the FPF-1 modifications programme and will allow the main topsides processing plant construction and installation activities to commence.Equipment and materials for the topsides continue to flow to the yard and work is progressing on construction of the pre-assembled units and racks that are to be installed on the vessel. Three additional sponsons have been added to the pontoons on the FPF-1, involving the construction and installation of approximately 2000 tonnes of steelwork blocks, to provide enhanced buoyancy.Four buoyancy "blisters" are being fabricated and will be added to the columns of the vessel during the next phase of operations, in parallel with the topsides construction works.These modifications are designed to ensure that the FPF-1 can accommodate the new topsides processing equipment that is to be installed on the main deck and achieve strong operational uptime performance. Subsea Infrastructure Installation Operations Since the last GSA operations update provided in September a number of key remaining 2013 subsea installation work programme milestones have been completed by Technip. The 60km 10-inch gas export pipeline from the FPF-1 to the BP operated Central Area Transmission System ("CATS") pipeline has been fully installed following completion of trench backfill, tie-in and as laid survey operations.The pipeline is now configured to receive gas exports upon the start-up of production from the Stella field.No modifications are required to the onshore Teeside Gas and Liquids Processing ("TGLP") terminal to receive and process the rich gas that will be exported from the FPF-1 through the CATS pipeline. Operations to install the flexible infield flowlines and static umbilicals that connect the Stella field drill centre manifolds to the FPF-1 riser bases are on-going.Diving operations to tie-in these components will be completed immediately following installation of the infrastructure.Upon completion of the tie-in operations, the 2013 subsea infrastructure installation campaign will have been completed. As notified in the September update, the GSA co-venturers are in the process of finalising the oil export route for the development taking into account the additional information gained from the flow test results of the "A1" well.Details of the selected option are expected to be provided later in Q4-2013. Drilling Programme Following the successful clean-up flow test performed on the Stella A1 development well, completion operations on the well, including installation and testing of the xmas tree, were concluded and the ENSCO 100 has commenced drilling of the Stella A2 well.This well is anticipated to take approximately 80-90 days to drill and complete.A clean-up flow test will be performed on the well, the results of which will be announced once available. Q3-2013 Production & Operations Total net export production in Q3-2013 was approximately 1.1 million barrels of oil equivalent, which equates to an average rate over the quarter of approximately 12,000 boepd, with oil production accounting for 96% of the total.Production during the quarter was reduced as a result of the previously advised shutdowns. Production during the quarter was derived from the operated Athena, Causeway Area (Causeway and Fionn), Beatrice, Jacky and Anglia fields and the non-operated Dons (Don Southwest and West Don), Cook, Broom and Topaz fields. Total production during Q3-2013 was impacted by commencement of the major planned shutdown of the Taqa-operated North Cormorant platform, which serves as the host facility for the Causeway Area fields.This shutdown is forecast to be completed around mid-October 2013, slightly behind the original schedule.The timely completion of this shutdown and thereafter execution to plan of the remaining platform modifications required to deliver power to the Causeway electrical submersible pump package installed in the well represents a key remaining risk to full year 2013 production. Production during Q3-2013 was also effected by the previously advised unplanned shutdown of the Shell operated Cook field in August 2013 for inspection of the infield flowline connecting the field to its host facility, the Anasuria floating production, storage and offloading vessel.The inspection has now been completed, with the results enabling the reinstatement of production.The shutdown duration was longer than initially anticipated by the field Operator, with production having just recently been restored. Further to the announcement made in August 2013, diagnostic testing on the Athena "P4" well has been completed and this has confirmed that the electrical submersible pumps installed in the well have failed.The net production impact of this has been successfully mitigated by the optimisation of the other wells on the field and the processing facilities, such that it represents a net production deferment to Ithaca of just over 300bopd.The options for reinstating full production from the well, via either a workover or sidetrack, are currently under evaluation. - ENDS - Enquiries: Ithaca Energy Graham Forbes firstname.lastname@example.org +44(0) 1224 652 151 Richard Smith email@example.com +44(0) 1224 652 172 FTI Consulting Billy Clegg firstname.lastname@example.org +44 (0) 207 269 7157 Edward Westropp email@example.com +44 (0) 207 269 7230 Georgia Mann firstname.lastname@example.org +44 (0) 207 269 7212 Cenkos Securities Jon Fitzpatrick email@example.com +44 (0) 207 397 8900 Neil McDonald firstname.lastname@example.org +44 (0) 131 220 6939 RBC Capital Markets Tim Chapman email@example.com +44 (0) 207 653 4641 Matthew Coakes firstname.lastname@example.org +44 (0) 207 653 4871 Notes Regarding Oil & Gas Disclosure In accordance with AIM Guidelines, John Horsburgh, BSc (Hons) Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and SubsurfaceManager at Ithaca is the qualified person that has reviewed the technical information contained in this press release. Mr Horsburgh has over 15 years operating experience in the upstream oil and gas industry. The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilising a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value. About Ithaca Energy Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business centred on the generation of discoveries capable of monetisation prior to development. Ithaca's strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company's website www.ithacaenergy.com. Not for Distribution to U.S. Newswire Services or for Dissemination in the United States Forward-looking statements Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, well completion times, future capital expenditures, future acquisitions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, the words"anticipate", "continue", "estimate", "expect", "may", "will","project", "plan", "should", "believe", "could", "target" and similar expressions, and the negatives thereof, whether used in connection with operational activities, production forecasts, budgetary figures, potential developments or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements and are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements and included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws. This information is provided by RNS The company news service from the London Stock Exchange END Contacts: RNS Customer Services 0044-207797-4400 email@example.com http://www.rns.com
Ithaca Energy Inc- Third Quarter Operations Update
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