9th May 2014 09:32
LONDON (Alliance News) - Ithaca Energy Inc Friday said it has been hit by delays at the Greater Stella Area development in the North Sea, moving back production until mid 2015.
The oil and gas exploration and development company said the topsides construction programme has advanced more slowly than planned for the project and the operator, FTSE 100-listed Petrofac PLC, announced Friday that the FPF-1 production vessel will not be moved to the Stella Field until spring 2015, meaning that first production would be held back until mid-2015.
The company said it is working with Petrofac to expedite the remaining construction and commissioning works on the FPF-1 and said that updates on the progress of the modification works will be provided over the coming months.
Ithaca Energy said that the incremental cost to the company of the delayed start-up is estimated at between USD5 million and USD10 million, due mainly to project management costs but said the funding position of the company has not been materially hit by the delays.
However, the company said good progress has been made with drilling of its third Stella development well and its subsea infrastructure installation works for the site.
It added that strong flow test results were achieved on its second Stella development well and clean-up flow test results from the third development well are expected around late June.
Ithaca holds a 54.66% interest in Stella, while Petrofac has a 20% interest in the field.
Ithaca Energy shares were down 9.7% to 137.07 pence, putting it among the worst AIM ALL-Share fallers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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