RBC Capital Markets comments on Ithaca Energy Inc.According to RBC Capital Markets:
Ithaca Energy (IAE.TO/IAE.L): Strong Flow Test on Fifth Stella Development Well
Ithaca's strong final development well on the Stella field effectively removes geological risk ahead of first oil next year. This fifth well combines to establish over 53,000boe/d combined capacity for the 30,000boe/d capacity Stella facility. In addition this first well into the Ekofisk chalk reservoir (the previous four were into the Andrew reservoir) should increase the 1P reserves for the field. This is a positive result ahead of the RBL facility redetermination and extension expected later this month/early next.
Ithaca Energy has announced the successful completion of the flow test on the fifth and final development well on the Stella field (55% Ithaca) in the UK Central North Sea. The well achieved flow rates over 8,000boe/d (78% oil). The A3 well was drilled to 14,267ft subsea depth with 2,137 gross horizontal reservoir section in the Ekofisk chalk reservoir (the secondary reservoir on the Stella field, primary is Andrew sandstone where four wells have already been drilled). The well intersected 2,073ft net pay (97%). Following an initial clean-up period to remove chemical stimulation fluids a series of production flow tests were conducted over approximately five days. The well was flowed up to 7,172b/d with 1,850scf/d gas oil ratio. The average over a 12 hour period was 8,080boe/d (split 6,191b/d 39API oil and 11.3mmcfd gas).
This result de-risks the production potential of the field with combined tested flow rates of over 53,000boe/d for the 30,000boe/d capacity Stella facility. The A3 well will be suspended and as with the previous four wells on the field can be brought onto production without any further intervention work on the well. The ENSCO 100 drilling rig will be demobilised shortly, ending the Stella development drilling campaign.