Ithaca 2Q output boosted by recent North Sea deal

North Sea-focused independent Ithaca Energy's second-quarter production was up by 57pc compared with the first quarter, as it benefited from the recent acquisition of UK field stakes from Japan's Sumitomo.

Ithaca produced 14,400 b/d of oil equivalent (boe/d) in the second quarter, of which 94pc was crude. Output for the period was 11,900 boe/d after stripping out around 2,500 boe/d of production derived from the recent acquisition of three producing UK oil fields from Sumitomo for $170mn. This is in line with the 11,000-13,000 boe/d guidance the company gave for 2014. But Ithaca reiterated that it expects output volumes to increase from the end of the third quarter after the completion of summer maintenance.

The UK oil field acquisitions are expected to be completed in the third quarter.

Output will also be boosted later this year as early production starts at the Don Northeast licence. "Operational matters" and production optimisation at the North Sea Causeway Area — comprising Causeway and Fionn fields — are also set to increase output this year, Ithaca said.

The restart of production from the Shell-operated Pierce field, in which Ithaca recently acquired a 7.5pc stake, and a well workover in August at the Athena field will also bolster the company's production. Pierce has been off line since June last year while the field's floating production, storage and offloading vessel is modified to enable the tie-in of the Brynhild field in the Norwegian sector of the North Sea. Production is scheduled to restart in the third quarter.

The company will release its financial results for the period on 12 August.

et/kaf

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