Ithaca Declares Second Stella Development Well a Success

Ithaca Energy declared Wednesday that flow-test operations on the second development well on its Stella field in the UK zone of the North Sea have proved successful.

Ithaca said the second Stella field development well, A2, flowed at a maximum rate of 10,442 barrels of oil equivalent per day (boepd) on a 44/64-inch choke. This comprised 7,281 barrels of oil per day and 19 million cubic feet of gas per day, with the oil being of high quality (approximately 39-degree API).

Ithaca said the flow test results achieved on the first two Stella development wells have substantially de-risked the initial annualized production forecast of approximately 30,000 boepd from the Stella field.

The ENSCO 100 (350' jackup) rig used to drill the A2 well will now move a couple of miles to the Stella northern drilling center location to drill the next two development wells.

Ithaca expects first hydrocarbons from the Greater Stella Area hub will now take place by the end of 2014, once modifications on the FPF-1 production facility are completed.

Ithaca CEO Les Thomas commented in a company statement:

"The excellent results of the A2 well represent another important step in de-risking the forecast production from the Stella field and realizing the significant shareholder value that lies within the Greater Stella Area.

"Whilst the FPF-1 modification works are now forecast to take longer than initially anticipated, the new processing facilities being installed on the vessel will ensure that a high quality production facility is deployed at the center of the GSA hub."


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