News Releasean 10, 2011 02:00 ET
Ithaca Energy Inc. Fourth Quarter 2010 Production and Operational Update
LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) -
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Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or the "Company"),an independent oil & gas company with exploration, development andproduction assets in the UK sector of the North Sea, announces thatcombined production in the fourth quarter averaged 8,754 barrels of oilequivalent per day ("boepd") gross (4,148 boepd net toIthaca). This figure includes a minor contribution from the recentlyacquired Anglia and Topaz fields, the transaction for which completed onDecember 17th 2010.
The Company's average daily sales volumes for the period are summarised as follows:
The average realised price for oil production from Beatriceand Jacky in October was $83.826 per barrel and in November was $89.856per barrel (before hedging and any additional price uplift at the pointof sale to a third party). Deliveries for December are currently beingpriced; gas pricing figures for Anglia and Topaz will be included infuture updates.
Overall average daily production for 2010 of 4,529 boepd isapproximately in line with the management forecast stated in theManagement Discussion & Analysis section of the Company's ThirdQuarter 2010 Financial Results.
During the first quarter of 2011 several ongoing activitiesare anticipated to have a positive impact on production levels atBeatrice and Jacky. These projects include:
- Sustained incremental injection of water into the Beatrice reservoirs
- Completion of the Beatrice Alpha well workover campaign including the installation of downhole pumps in two Alpha production wells
- Intervention to restore pumped production from Bravo well, B1
Current average daily production levels for the Company exceed 4,400 boepd, being the target for the first quarter.
As previously announced, management anticipates net averageproduction for 2011 to be between 5,500 to 6,000 boepd net to Ithaca.Sustaining this level of production will be subject to successful welland facilities interventions across the Beatrice Complex and takes intoaccount a successful second production well at Jacky as well as firstoil from the Athena Field in Q4 2011.
In accordance with AIM Guidelines, Lawrie Payne, MA MarineGeology (Alberta & Columbia) and Chairman of Ithaca Energy is thequalified person that has reviewed the technical information containedin this press release.
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