Ithaca Selects GE O&G for Stella Development

- Ithaca Selects GE O&G for Stella Development

Tuesday, September 06, 2011
GE O&G

GE O&G subsea systems and services have been selected by Ithaca Energy (UK) Ltd. for the Stella oil and gas field development project in the Central North Sea, GE reported Tuesday at Offshore Europe 2011.

Under a contract of $17 million, GE will supply an integrated package of "S" Series shallow water vertical tree (SVXT) systems, controls and SG1 wellheads to be installed using a jack-up rig.

Phase 1 for the Stella project will be four trees for the planned development wells with a possible additional tree for a further well in the area.

The SVXT systems are based upon GE Oil & Gas latest design of the shallow water structured product subsea tree system, smaller and lighter than any traditional shallow water tree system on the market. The SVXT system has been developed for ease of installation, minimal ROV dependency, reduction on weather influenced installation operations due to smart tools, higher load carrying capacities and increased pressure envelopes.

"Our ability to meet the engineering challenges of this project regarding temperature, riser analysis clarifications, pressure ratings and gas lift requirements was a key to receiving this contract," said Matt Corbin, regional leader—United Kingdom and continental Europe for GE Oil & Gas. "The agreement also builds on the good working relationship we established with Ithaca in a previous project."

The scope of the GE contract includes S Series SVXTs, SG1 drill-through wellhead systems and a full services support package comprising rental tools and manpower.

The equipment will be engineered and manufactured at GE's facilities in the United Kingdom with the equipment scheduled for shipment in the fourth quarter of 2012.

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Ithaca Finalizes Acquisition of Cook Stake from Hess

- Ithaca Finalizes Acquisition of Cook Stake from Hess

Friday, August 26, 2011
Ithaca Energy Inc.

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

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Sartor Secures Rescue Vessel Contract with Ithaca

- Sartor Secures Rescue Vessel Contract with Ithaca

Wednesday, July 27, 2011
Sartor Offshore Rescue Ltd.

Sartor Offshore Rescue Ltd has secured a three year contract with Ithaca Energy UK Ltd worth £8.2million, in a deal brokered by Clarksons Offshore, Aberdeen.

Sartor's Ocean Sprite, a multi-role offshore support vessel which will operate as a field support and emergency rescue and response vessel for the contract duration, is expected to commence the contract at the Athena field in the North Sea, 180 kilometres Northeast of Aberdeen, in Q4 2011 when Ithaca commences production there.

John Bryce, managing director of Sartor Offshore Rescue Ltd, said, "We are delighted that Ithaca Energy has chosen Sartor Offshore Rescue and our Ocean Sprite, it is a fine vessel with an excellent safety record of 2,860 days without a lost time injury (LTI).

"This is a very significant contract win for us as it is our first time to work with Ithaca Energy and I look forward to strengthening our relationship. We will supply two crews, each of 12 seamen, aboard the Ocean Sprite and I anticipate a continuation of our excellent safety record on board.

"We have invested heavily into our fleet, staff training and the Scottish shipping industry. We actively promote safety onboard our vessels and seven of our vessels have at least 1,000 days with no LTI's, with the more recent acquisitions gradually working towards this milestone. I am delighted that our strong safety record and reputation is attracting new clients such as Ithaca Energy and I look forward to a long and safe working partnership with them," he continued.

James Lund, Projects Manager of Ithaca Energy (UK) Ltd, said, "This agreement is a major contract to be awarded for the operational phase of the Athena project. Sartor Offshore Rescue Ltd and their vessel the Ocean Sprite have an excellent safety and track record which were key to their selection to support the Athena asset in the operational phase. Ithaca looks forward to working closely with Sartor over the next three years"

Sartor Offshore Rescue currently manages a fleet of 9 ERRVs (emergency response and rescue vessels) & 4 PSVs (platform supply vessels) out of Aberdeen.

The company's aim has been to continue to expand its standby and emergency response capabilities within both the Norwegian and British sector of the North Sea and to be able to provide cross-border solutions reflecting the needs of its clients.

Sartor Offshore Rescue employs approximately 330 seamen in its ERRV and PSV fleet and provides multi-role offshore and emergency rescue and response vessels for many of the oil majors operating in the North Sea.

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Ithaca Updates North Sea Ops

- Ithaca Updates North Sea Ops

Monday, July 11, 2011
Ithaca Energy Inc.

Ithaca announced progress on Athena and Stella Development projects.

Athena Project - Completions Update

Operations to prepare the Athena field development well 14/18b-A2Z ("the well" or "A2") for production have been successfully concluded. A 7" production liner and a dual electrical submersible pump system have been successfully installed above the horizontal section of the well and the subsea xmas tree and flowbase are ready for hook-up of flowlines by the subsea installation contractor. The Sedco 704 drilling unit, will stay on location to undertake further completion work for the project and is currently preparing to complete 14/18b-16 (to be renamed 14/18b-A3 or "A3"). This is the second of a five well program of completions (four production and one water injection) to be carried out before hook-up to the Floating Production Storage and Offloading vessel, BW Athena.

Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).

Stella Project - Subsea Trees and Control Systems Contract Awarded

The development of the Stella field has moved a step forward through the placement of a contract with GE Oil & Gas to manufacture and supply subsea trees and controls systems. The initial phase of detailed engineering work has commenced and will focus on the procurement of forgings and materials for the systems. The systems will be delivered as an integrated package and are designed for installation using a heavy duty jackup drilling unit. The supply of the trees and control systems will be managed and delivered from GE Oil & Gas's Aberdeen facility.

The Company also confirms that a geotechnical program is currently ongoing to determine the suitability of certain jackup drilling units at four potential development drilling locations on the Stella and Harrier fields and incorporating test boreholes in advance of the planned Hurricane appraisal well. Two drill centers will be selected.

Stella Joint Venture Partners are Ithaca (operator, 50.33%), Dyas UK Limited (31.67%), Challenger Minerals (North Sea) Limited (18%).

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Ithaca Welcomes New Chief Production Officer

- Ithaca Welcomes New Chief Production Officer

Thursday, July 07, 2011
Ithaca Energy Inc.

Ithaca announced the appointment of Mr. Mike Travis as Chief Production Officer. Mr. Travis is anticipated to commence employment as an officer of the Company at the beginning of 2012.

Mike Travis (aged 51) has over 28 years of diverse offshore and onshore experience in the oil industry which has been acquired in the North Sea and other challenging international locations. He has held key leadership positions throughout his career in all aspects of Production and Development projects including asset management, drilling and operations. Mr. Travis has previously been employed by BP, LASMO, Venture Production and more recently by Premier Oil. He has a strong track record of generating outstanding team performance and delivering results, throughout his career.

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Ithaca Wraps Up Ops at Athena Field

- Ithaca Wraps Up Ops at Athena Field

Monday, June 06, 2011
Ithaca Energy Inc.

Ithaca announced the final production well on the Athena field has been drilled and fully cased. The well encountered a considerable section of oil saturated net reservoir, with good porosities. Development drilling has now been successfully concluded and the project remains on schedule for production start up in 4Q 2011 at approximately 22,000 barrels of oil per day ("bopd") (gross), approx. 5,000
bopd (net to Ithaca), in-line with previous disclosure.

Athena field development well 14/18b-A2Z ("the Well") intersected 515 feet (measured depth) of net reservoir in the sub horizontal section of the well bore which was drilled to a total measured depth of 15,497 feet. The drilling rig, Sedco 704, is now proceeding to run completion equipment and perforate the Well, the three existing suspended production wells and the water injection well.

The Well was directionally drilled to the northwest of the Athena field where it encountered the principal reservoir section, the Scapa A reservoir, at 11,967 feet (measured depth), 8,851 feet (true vertical depth subsea), in line with prognosis. Electric logs acquired across the entire reservoir section of interbedded Scapa age sandstones and shales confirmed a series of reservoir sands with porosities up to 20%. Two of the thickest, high porosity sandstone units were encountered close to the top of the reservoir section and Management anticipates that these will contribute to strong flow rates when the Well comes into production. A production liner has been run across the reservoir section.

The ongoing modification and recertification work on the Floating Production, Storage and Offloading ("FPSO") vessel, 'BW Athena' (currently in dry dock in Dubai) is well advanced. The vessel has been successfully separated for installation of a turret docking section which is currently being welded into the structure amidships. The vessel will be extended by approximately 65 feet. The FPSO will return to UK waters for 'hook up' to the turret mooring buoy by the end of 3Q 2011.

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Ithaca Suspends Well at Jacky Field

- Ithaca Suspends Well at Jacky Field

Wednesday, May 18, 2011
Ithaca Energy Inc.

Ithaca announced that the J03 well on the Jacky field has been suspended having encountered a smaller than anticipated oil column in the Beatrice 'A' Sand reservoir. Given the result of the well, technical work is ongoing to determine whether to re-enter the well and complete it as a water injector to maximize oil recovery from the Jacky field.

Meanwhile, the drilling unit for the J03 well, Northern Enhancer, currently located over the Jacky platform, will commence a workover operation to replace downhole pumps in the J01 production well. This operation is estimated to last approximately 15 days.

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Ithaca Confirms Reserves at Cook Field

- Ithaca Confirms Reserves at Cook Field

Monday, May 16, 2011
Ithaca Energy Inc.

Ithaca announced that further to the announcement of the Sale and Purchase Agreement ("SPA") with Hess:

• The Company has been informed that Hess has received an exercising notice in relation to the existing Maclure field coventurers' rights to pre-empt the Maclure part of the Transaction
• Sproule has completed its Reserves Audit Opinion on the Cook field and considers Management's view of combined remaining Proved plus Probable ("2P") reserves of 5.75 million barrels of oil equivalent ("mmboe") net to Ithaca as at January 1, 2011 to be reasonable
• Adjusted consideration of US $62.5 million and the transfer from Ithaca to Hess of a 10% interest in three Southern North Sea exploration blocks

As announced on April 4, 2011, Ithaca entered into the SPA to acquire interests in the Cook oil field ("Cook") and Maclure oil field from Hess and to transfer certain blocks to Hess. Subject to completed documentation being executed by Hess and any pre-empting parties, the interest in the Maclure field will be removed from the Transaction and the consideration will be adjusted accordingly such that Ithaca shall acquire a 28.46% non-operated interest in only Cook from Hess. The effective date of the Transaction remains January 1, 2011.

The Company commissioned Sproule to undertake an independent audit of Management's estimate of remaining oil and gas reserves in the Cook field. Management estimate that the acquisition of the Cook interest will increase the Company's remaining 2P net reserves by 5.75 mmboe from 46.05 to 51.80 mmboe and this estimate has been considered reasonable by the findings of the audit. The audit was performed in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions and evaluation practices and procedures as specified by National Instrument 51-101 ("NI 51-101").

Based on 5.75 mmboe of 2P reserves remaining in Cook, the acquisition is priced at 10.87 USD per boe. Management anticipates that average production from Cook for 2011 to be approximately 1,900 boepd net to Ithaca.

The Transaction is anticipated to complete in 3Q 2011 and is subject to DECC and co-venturer approvals. At completion, the consideration will be subject to normal industry adjustments to reflect the income and costs incurred since the effective date.

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Ithaca Inks Earn-In Agreement on Hurricane Discovery

Ithaca Inks Earn-In Agreement on Hurricane Discovery

Tuesday, April 26, 2011

Ithaca Energy Inc.

Ithaca has signed an Earn In agreement with Challenger Minerals (North Sea) Limited ("CMI") on the Hurricane discovery ("Hurricane") in Block 29/10b, within the Ithaca operated Greater Stella Development Area.

Hurricane was discovered in 1995 by well 29/10-4Z which tested the western lobe of a mapped structure and encountered light oil (41 degrees API) in a 62 foot section of reservoir sands; no drill stem test was undertaken at that time. The Hurricane appraisal well is being designed to confirm hydrocarbons in the eastern lobe of the structure characterized by high porosity (up to 30%) channelized Paleocene Rogaland sandstones. On successful appraisal of Hurricane by the initial well, the intention is to drill a sidetrack 'keeper' well up structure in anticipation of future development and tie back to the Stella hub.

Under the terms of the Earn In agreement, CMI is committed to pay a share of costs of the initial well in Block 29/10b. In consideration for this commitment CMI is provided with an option, exercisable no later than 90 days following abandonment or suspension of the initial appraisal and any sidetrack well, to take an interest in Block 29/10b. Under the Earn In arrangements, CMI will pay 40% of gross Hurricane initial appraisal well costs in exchange for a 31% equity interest in Block 29/10b, thereby carrying a part of Ithaca's share of all costs of drilling an initial appraisal well. In addition, upon successful appraisal, CMI will pay 40% of gross costs of a drill stem well test of any sidetrack. All additional costs, including those for planned sidetrack drilling, shall be apportioned such that CMI shall pay its 31% pro rata share.

The transaction is subject to agreeing 'turnkey' terms with Applied Drilling Technology International ("ADTI") (a subsidiary of Transocean Inc.) for the provision of a suitable drilling unit and well management services. Upon agreement of 'turnkey' terms and provision of a suitable rig, Ithaca anticipates that the appraisal well will be commenced in Q4 2011.

Ithaca currently holds 100% equity interest in the Hurricane discovery and Block 29/10b.

Ithaca Acquires North Sea Assets from Hess

Ithaca Acquires North Sea Assets from Hess

Monday, April 04, 2011

Ithaca Energy Inc.

Ithaca has entered into an agreement to acquire a 28.46% non-operated interest in the Cook oil field and a 7.41% non-operated interest in the Maclure oil field ("Maclure") from Hess Limited ("Hess") for a consideration of US $74.5 million and the transfer from Ithaca to Hess of a 10% interest in each of exploration Blocks 42/25b, 43/16a and 43/21c ("the SNS blocks") in the Southern North Sea (the "Acquisition").

Cook, operated by Shell, lies in Block 21/20a in the Central North Sea. Gross average production from the field for 2010 was 7,940 barrels of oil equivalent per day ("boepd") of mainly oil (2,260 boepd net to Hess interest).

Maclure, operated by BP, is located in Block 9/19 in the Northern North Sea. The field produces mainly oil; gross average production from the field for 2010 was 5,857 boepd (434 boepd net to Hess interest).

Maclure production is temporarily suspended. Production is routed through the third party owned Gryphon Floating Production Storage and Offloading vessel (the "FPSO"), which broke some of its moorings in February 2011. The operator of the FPSO is taking measures to investigate and repair the mooring system.

The acquisition of Maclure is subject to preemption within 30 days of notification of the transaction by other parties in the Maclure field.

The Company has commissioned Sproule International Ltd ("Sproule") to provide a Reserves Audit Opinion on Cook and Maclure. The opinion from Sproule is anticipated in approximately 40 days from this announcement and, on receipt, the Company expects to make a further, more detailed announcement including information on reserves and other potential upsides associated with the Acquisition together with details, if any, of preemption by any Maclure parties. Following completion of the transaction, Ithaca plans to engage Sproule to undertake a further comprehensive evaluation of the new assets in accordance with the Canadian Oil and Gas Evaluation

Handbook ("COGEH") reserves definitions and evaluation practices and procedures as specified by National Instrument 51-101 ("NI 51-101").

Terms of the Acquisition

The Acquisition will be effected through a sale and purchase agreement ("SPA") between Ithaca Energy (UK) Limited, as the purchaser, and Hess Limited, as the seller. The SPA contains customary provisions for a transaction of this nature in the oil and gas sector and is subject to DECC and co-venturer approvals.

The Acquisition is expected to complete in Q3 2011 with an effective date of January 1, 2011.

Financing of the Acquisition

The Acquisition will be funded from existing cash. Evaluation of the Acquisition with Lloyds Bank Corporate Markets (previously referred to as 'HBOS') indicates that the Acquisition should support an increase in Ithaca's debt capacity of approximately US $45 million. In line with previous announcements on the Company's debt facilities, the overall size of the Company's debt facility is reasonably anticipated to increase from US $140 million to US $185 million. The Company has not drawn from this facility.

Iain McKendrick, CEO, commented, "This acquisition strengthens the Company's portfolio of producing oil assets and diversifies Ithaca's existing UK North Sea production base, whilst keeping decommissioning liabilities to a minimum. Significant non-operated interests, particularly in the Cook field, are highly strategic for the Company. It permits the Company to focus on extracting value from its existing operated portfolio, whilst being underpinned by additional non-operated production and cash flow being generated though the acquisition. Final negotiations to crystallize the transaction were conducted after the recent changes to the UK Fiscal system. Once again this demonstrates our capability to be opportunistic, execute accretive deals and build value for our shareholders".

Ithaca Recommences Drilling at Jacky Field

Ithaca Recommences Drilling at Jacky Field

Tuesday, March 29, 2011
Ithaca Energy Inc.

by  SubseaIQ

 

Ithaca announced that drilling of the J03 well on the Jacky field has now recommenced.

The Energy Enhancer drilling unit is now fully operational following successful repair to the drilling mud handling system onboard the rig. Production from J01 was briefly suspended to complete the 'top hole section' of the J03 well and then immediately reinstated. The J03 well has now been drilled to approximately 2,400 feet measured depth and drilling operations are scheduled to last approximately a further 60 days.