London-based investment bank Westhouse Securities expects a stream of news from Ithaca Energy between now and the middle of next year as the North Sea-focused independent oil and gas firm prepares to start up production at its Greater Stella Area development.
Ithaca announced its third-quarter results Thursday, revealing that its production for the quarter averaged 11,942 barrels of oil equivalent per day (boepd) – an increase of more than 130 percent on 3Q 2012. The firm expects to produce an average of approximately 13,000 boepd for the whole of 2013, reflecting the inclusion of production from the assets acquired from its takeover of Valiant Petroleum.
The company highlighted that deliverability of the Stella reservoir was confirmed during the quarter with the successful completion of the Stella A1 development well, in which a clean-up test performed on the well resulted in a maximum flow rate of 10,835 boepd.
Ithaca said that solid progress continues to be made on the execution of its floating production facility modifications program and that the vessel has been refloated following completion of the dry dock-related marine system works. Work on the main topsides processing plant construction and installation activities has also begun.
Ithaca added that the execution of the 2013 subsea infrastructure work program for Stella is nearing completion, with the remaining works now focused on tie-in of the infield flow lines and umbilicals.
Commenting on the results, analysts at Westhouse said:
"In terms of operational catalysts, we continue to look to the second Stella 'A2' development well, where drilling of the horizontal reservoir section is scheduled to commence shortly; and the spud of the high-risk-high-return exploration well, Handcross, before the year end."
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