IAE 2011!!!!!
thaca Energy Inc. 2011 Financial Results & Reserves Update (ccnm)
LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - March 29, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ithaca Energy Inc. ("Ithaca" or "the Company") (TSX:IAE)(AIM:IAE) announces its financial results for the twelve months ended December 31, 2011 and the Company's independently evaluated reserves as of the same date.
HIGHLIGHTS
For the year ended December 31, 2011
Financial
- Record Cashflow from Operating activities of US$103.5 million (2010: US$88.9 million)
- Profit before tax of US$37.1 million (2010 Reported: US$38.0 million, IFRS adjusted US$58 Million)
- Major capital investment of over $205 million, including acquisitions
- Cash US$112.1 million (2010: US$201.9 million), inclusive of US$16.5 million restricted cash, with senior debt facility remaining undrawn
- UK tax allowances pool of US$325 million (2010 $289 million)
- Results and comparatives are now reported under International Financial Reporting Standards ("IFRS")
Reserves
Net Proved and Probable ("2P") reserves assessed by Sproule International Limited increased ~9%, from 46.05 mmboe as at December 31, 2010 to 50.25 mmboe as at December 31, 2011. The increase in reserves came mainly from the acquisitions of an interest in the Cook field and Challenger Minerals (North Sea) Ltd. Smaller revisions were recorded across other fields including Athena, where Proved plus Probable reserves increased to 26.10 mmboe Gross (5.88 mmboe Net) post drilling and completion of the wells on the field.
- Net 1P Reserves 26.13 million barrels of oil equivalent ("mmboe") (2010: 22.30 mmboe)
- Net 2P Reserves 50.25 mmboe (2010: 46.05 mmboe)
- Net 3P Reserves 87.75 mmboe (2010: 86.12 mmboe)
- Net 2P Reserves Pre-Tax Net Present Value US$1.085 billion (2010: US$912.40 million)
Significant developments
- Successfully completed drilling and major subsea infrastructure work on the Athena development. Modifications to the BW Athena FPSO were completed in February 2012 and the vessel is now sailing to the North Sea. Final pressure testing on the subsea infrastructure is in the course of being completed and first oil is expected in Q2 2012
- Sanctioned the development of the Stella and Harrier fields having secured ownership in the FPF1 Floating Production Unit and substantially de-risked the project through a series of transactions with Petrofac and execution of a contract for use of the Ensco 100 drilling rig for the development drilling campaign
- Completed two material acquisitions:
- 28.46% of the Cook Field
- 100% of Challenger Minerals (North Sea) Ltd
- Successful appraisal drilling of the Crathes discovery unlocking the potential for a combined development of the Crathes, Scolty and Torphins discoveries
- Graduated from the TSX Venture Exchange to the Toronto Stock Exchange on November 1 2011
POST YEAR END EVENTS
- On 21 March 2012 the UK Government increased the Small Field Allowance ("SFA") tax shelter availability from the 32% Supplemental tax charge for future small developments
- The size of fields that qualify for full SFA was increased to include all fields with reserves of under 45 mmboe
- The tax allowance available to each field has been doubled from approximately US$120 million to US$240 million
This change brings the Stella field under the SFA tax shelter and doubles the relief expected for all other developments including Harrier, Hurricane, Carna, Scolty Area (Scolty, Crathes and Torphins) and South West Heather. In respect of the Greater Stella Area, this amounts to in excess of US$80 million of additional tax savings net to Ithaca over the expected life of the fields
- Taken over operatorship of the Carna discovery and increased the Company's working interest from 16% to 32%
- Entered into swap options to sell 768,800 bbls of the Company's March 2012 - June 2013 forecast production at an average price of $116.07 per barrel
- The Company confirmed that it had received a non-binding proposal to acquire all of the outstanding shares of the Company and unsolicited interest from a number of third parties. The Company stated that it would enter into discussions with all bona fide interested parties with a view to maximizing shareholder value but that there was no certainty that an offer would be made for the Company. Discussions continue with bona fide interested parties.
PRODUCTION Q1 2012
- With less than 3 days remaining in the first quarter of 2012, the Company estimates net export production to be approximately 4,200 boepd. Actual net export production for Q1 will be confirmed in the Q1 results
Iain McKendrick, CEO, commented,
"Material progress has been made over the course of 2011 with the continued growth of the Company. The past year has been marked by strong financial results and the acceleration of growth though both accretive acquisitions and the major advancements that have been made on the Company's two key operated developments, Athena and Stella/Harrier. In the next quarter the Company looks forward to first oil from the Athena field, the spudding of the Hurricane appraisal well and obtaining government approval for the Stella / Harrier Field Development Plan."