10th Jul 2014 10:57
LONDON (Alliance News) - Ithaca Energy Inc Thursday said its production rate in its second quarter has improved strongly and is now in line with the company's overall production guidance range for 2014, after including production from three new acquisitions.
The North Sea oil and gas operator said its average production increased by 56% for the three months ended June 30 to 14,400 barrels of oil equivalent per day from 9,222 barrels in the previous quarter, bringing production in line with its full-year guidance range of 13,500 to 15,500 barrels per day issued previously.
However, the company said that if assets which are currently being bought from Sumitomo Corp were not included, its production rate for the quarter would be 11,900 barrels of oil equivalent per day, which is also in line with its full-year guidance.
Ithaca entered a deal in June to acquire interests from Japan's Sumitomo in three offshore UK fields for a total payment of USD170 million, providing a large increase in reserves and adding to its 2014 production guidance, which previously had been 2,500 barrels per day less.
In the first quarter, the company's production rate was down on its 2013 average due to shutdowns on its Cook and Beatrice fields.
Ithaca said on Thursday that 2014 production volumes are forecast to be weighted towards the second half of the year, following the completion of its planned summer maintenance shutdowns and a range of well improvements.
Ithaca Energy shares were down 0.8% to 143.62 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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