Ithaca Energy Expands GSA Interest with New Acquisitions

Ithaca Energy Inc. is expanding its interests in the Greater Stella Area, located within the UK Continental Shelf, with the acquisition of new assets in the region for a total cost of under $6 million.

The company will acquire a 100 percent working interest in, and operatorship of, license P1588 from Engie E&P, Ineos and Maersk, effective January 1. This license contains approximately 10-20 percent of the Vorlich discovery, which was discovered and appraised in 2014 with exploration well 30/1f-13AZ and 13Z.

The well encountered hydrocarbons in a Palaeocene sandstone reservoir in Block 30/1c and a subsequent side-track into Block 30/1f confirmed the westerly extension of the discovery. The well was flow tested at a maximum rate of 5,350 barrels of oil equivalent per day.

Ithaca has also entered into an agreement to acquire a 75 percent interest in, and operatorship of, License P1823 from Engie E&P, effective May 1. The license contains the Austen discovery, which is an Upper Jurassic oil/gas-condensate accumulation on which a number of wells have been drilled. The most recent of these was appraisal well 30/1b-10,10Z drilled by Engie in 2012, which was flow tested at a maximum rate of 7,820 boepd.

The gross contingent resources associated with Austen are estimated by Ithaca to be in the range of 4-28 million boe. An independent assessment will be completed at the end of the year as part of the company’s usual annual reserves evaluation exercise.

"We are very pleased to announce this group of low cost acquisitions that further expand our core Greater Stella Area portfolio,” said Les Thomas, Ithaca Energy CEO.

“This is in line with our "hub and spoke" strategy for maximizing the value of the central infrastructure that has been put in place for the start-up of production from the Stella field,” he added.

The licence acquisitions are expected to complete in the second half of this year, according to FirstEnergy, who described market reaction to the company’s latest news as “positive”.

“Ithaca continues to build on its strategy to grow its resources base in the Stella area at minimal costs and [with] no near term decommissioning liabilities,” said FirstEnergy in a brief research note sent to Rigzone.

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