• Stella test
• Ithaca seals BW Carmen deal
• Ithaca closes in on Athena floater
• Ithaca sizes up Stella
• Overhaul adds to Beatrice muscle
• Beatrice sees output down
• Ithaca gets the all clear at Beatrice
• Ithaca flies high at Jacky
• Ithaca ramps up Jacky flows

Ithaca benefits from oil price hike

UK-listed Ithaca Energy posted net profit of $7.9 million on $110.8 million revenue for the financial year 2009.

http://www.upstreamonline.com/incoming/article211771.ece">Upstream staff 12 April 2010 07:06 GMT

Oil sales stood at $101.3 million at a higher average realised price of $68.65 per barrel, up from $42.10 per barrel last year.

Average daily output rose to 7083 barrels per day of oil from three oilfields, up from 1540 bpd from the Beatrice Alpha field last year.

Ithaca’s 2009 production share was 4042 bpd, up from 1152 bpd in 2008.

The operator expects its share of output to reach 5100 bpd.

Five wells are lined up at Beatrice Alpha during the second and third quarter to maintain the field output.

Published: 12 April 2010 07:06 GMT | Last updated: 12 April 2010 07:06 GMT

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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 and production assets in the UK sector of the North Sea, announces its financial results for the twelve months ended December 31, 2009.

2009 Highlights

2009 was a year of great progress and financial transformation. A sustained contribution of production from the Beatrice Field during the year, the start-up of the Jacky Field in April 2009 and increasing crude oil prices throughout the year provided substantial sales revenues. The Dyas asset transaction eliminated debt and provided resources to drive forward the development of a re-balanced portfolio with lower average net working interests. The acquisition of an additional interest in Stella and the subsequent Challenger Minerals (North Sea) Limited farmout gave access, with operator control, to the important Greater Stella Area. The production performance of Jacky, work on optimising Beatrice well delivery and quantification of the Stella and Harrier reserves, together with the Carna non-operated discovery resulted in Proved and Probable reserves upgrades of approximately 115% from 17.20 million barrels of oil equivalent ("mmboe") to 37.19 mmboe as at December 31, 2009 and as reported on February 1, 2010.

Financial Performance

--  Revenues of US$110.8 million principally provided by: 

    --  Oil sales (US$101.3 million) with an average realised oil price of

        US$68.65 per barrel 

    --  Earnings from the provision of facilities and services at the Nigg

        terminal and other services (US$9.2 million) 

--  Strong Earnings before Interest, Depreciation & Tax of US$61.6 million 

--  Full Year Net Profit of US$7.9 million 

--  Cash and Equivalents of US$29.9 million at year end - fourth consecutive

    quarter of positive cash flow from operations 

--  Zero Debt 

--  Surplus of Current Assets over Current Liabilities of US$59.3 million

    with minimal long term liabilities. 

--  Cost and expenses of US$102.8 million reflected a full year of Beatrice

    operations and Jacky start-up. 

4th Quarter Contribution

--  Revenues of US$39.7 million 

--  Earnings before Interest, Depreciation & Tax of US$30.5 million 

--  4th Quarter Net Profit of US$17.6 million 

Targets for 2010 and Post 2009 balance sheet events

--  Successful workover campaign at Beatrice Bravo (Q1 2010) adding 1,500

    barrels of oil per day ("bopd") gross to production potential 

--  Drilling of the Stella appraisal well (Q1/Q2 2010) 

--  Five well intervention programme at Beatrice Alpha maintaining the

    production base (Q2/Q3 2010) 

--  Athena FDP approval (July 2010) and start of development drilling (Q4

    2010), fabrication of subsea facilities and modifications to FPSO (Q3/Q4

    2010) 

--  Stella area development plan and FDP submission on a successful Stella

    appraisal 

--  5,100 bopd 2010 average net production target. (Q1 2010 average, 4,193

    bopd) 

--  Priority to identify and execute growth opportunities 

Iain McKendrick, CEO, commented,

"As a result of the clear progress made in 2009, Ithaca is in a strong cash position, clean of commitments, has the ability to access bank debt and is poised for future growth. We have made a good start to the current year with the drilling of the Stella appraisal well, from which test results are expected shortly. In the remainder of the year, incremental projects in the Beatrice area will secure base production levels and the development of Athena and potential expansion of operated activities in the Stella area should provide a exciting flow of project work and future production growth."

Note:

Depletion, depreciation and accretion were calculated using the full cost method, the asset transaction with Dyas and the reserve upgrade being reflected in the quarter in which they were realised. Losses on foreign exchange arising from the movements between the corporations operating and reporting currencies were more than offset by the gains on the financial instruments put in place to mitigate such movements. Interest and tax charges were not significant reflecting the robust financial position of the company and the tax allowances available against past investment and expenditures.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.