Ithaca Cuts Capex Budget by 60% for 2015

North Sea-focused independent producer Ithaca Energy Inc. that its budget for capital expenditure in 2015 will be almost 60-percent less than what it spend in 2014.

Approximately two-thirds of the planned $150-million capital spending budget relates to the company’s Greater Stella Area assets. The balance will be spent on the completion and tie-in of the Ythan development well, the continuation of the onshore UK Wytch Farm well work-over program, asset maintenance activities and two Norwegian wells.

Ithaca added that, given the schedule of activities in 2015, its capital spending for the year is expected to be weighted towards the first half.

Ithaca also said that it anticipates its base production for 2015 to be around 12,000 barrels of oil equivalent per day (boepd) – of which approximately 95 percent will be oil. This target does not include the additional contribution resulting from the start up of the Stella field, the exact timing of which is unclear. However, once it comes on line Stella is expected to contribute approximately 16,000 boepd to Ithaca.

Ithaca achieved average production in 2014 of roughly 12,300 boepd. The firm has 6,300 barrels of oil per day hedged at an average price of $102 per barrel from Jan. 1 to June 30, 2016.

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