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Press release from Marketwire

Ithaca Energy Inc.: Hurricane Appraisal Well Commences

Monday, July 09, 2012

Ithaca Energy Inc.: Hurricane Appraisal Well Commences02:00 EDT Monday, July 09, 2012LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 9, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESIthaca Energy Inc. (TSX:IAE)(LSE:IAE) announces that it has commenced drilling of the Hurricane appraisal well in Block 29/10b (Ithaca operated), which lies within the Company's Greater Stella Area in the UK sector of the Central North Sea. The well is being drilled using the WilHunter semi-submersible rig. The Company has contracted the services of Applied Drilling Technologies International ("ADTI") to manage drilling operations under "turnkey" contract arrangements. The well programme is anticipated to take between 75 to 85 days to complete, including the performance of a drill stem test. The Hurricane discovery well, 29/10-4z, was drilled by Shell in 1995. The well encountered 41ºAPI light oil in Eocene Rogaland sands in the western lobe of the structure. The appraisal well will be drilled to the base of the Tertiary section in the eastern lobe of the mapped structure and is designed to satisfy three primary objectives:Confirm the nature and volume of recoverable hydrocarbons Calibrate the hydrocarbon contact with seismic amplitude Verify the distribution, quality and connectivity of the reservoir Upon successful completion of the appraisal well objectives, the wellbore will be suspended for future re-entry and completion as a production well. The Hurricane discovery lies within 10 kilometres of the "FPF-1" floating production unit that will be installed as part of the Company's development of the Stella and Harrier fields. The anticipated development of Hurricane would involve the tie-back of wells and subsea infrastructure to the FPF-1, providing a valuable incremental add-on to the ongoing development of the Greater Stella Area. The Company's independent reserves evaluator, Sproule International Limited, assigned net Proved and Probable reserves to Hurricane of 2.7 million barrels of oil equivalent ("mmboe"), based on the well in the western lobe of the discovery, in its report dated December 31st, 2011. The Joint Venture partners in the Ithaca operated Block 29/10b (Hurricane) are Ithaca Energy (UK) Ltd (54.66%), Dyas UK Ltd (25.34%) and Petrofac Energy Developments UK Limited (20%).Notes to oil and gas disclosure: In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and senior petroleum engineer at Ithaca is the qualified person that has reviewed the technical information contained in this press release. Dr Morel has 30 years' operating experience in the upstream oil industry. The Company's petroleum and natural gas reserves (the "reserves") have been independently evaluated by Sproule (www.sproule.com) in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions and evaluation practices and procedures which abide by the standards set by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), as specified by National Instrument 51-101 ("NI 51-101"). The evaluation uses Sproule's forecast prices and costs at December 31, 2011. The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimates of reserves and future net revenues for individual properties may not reflect the same confidence level as estimates of reserves and future net revenues for all properties, due to the effects of aggregation.About Ithaca Energy: Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf ("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the development of existing discoveries on properties held by Ithaca, to originate and participate in exploration and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth as they are identified from time to time by Ithaca.Not for Distribution to U.S. Newswire Services or for Dissemination in the United StatesForward-looking statements Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters including drilling plans and potential field reserves. When used in this announcement, the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target" and similar expressions, and the negatives thereof, whether used in connection with future development plans associated with the Hurricane field are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or information. In the view of the Company's management, this information reflects the best currently available estimates and judgements, and presents, to the best of management's knowledge and belief, the expected course of action. These forward-looking statements speak only as of the date of this announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws. Readers are cautioned that the forward-looking statements contained in this press release should not be used for purposes other than for which it is disclosed herein. These statements may not be appropriate for other purposes.FOR FURTHER INFORMATION PLEASE CONTACT: Nick MuirIthaca Energy:CTO+44 (0) 1224 650 267nmuir@ithacaenergy.comORJohn WoodsIthaca Energy:CDO+44 (0) 1224 650 273jwoods@ithacaenergy.comORPhilip DennisPelham Bell Pottinger Public Relations:+44 (0) 207 861 3919pdennis@pelhambellpottinger.co.ukORRollo Crichton-StuartPelham Bell Pottinger Public Relations:+44 (0) 207 861 3918rcrichton-stuart@pelhambellpottinger.co.ukORJon FitzpatrickCenkos Securities plc:+44 (0) 207 397 8900jfitzpatrick@cenkos.comORBeth McKiernanCenkos Securities plc:+44 (0) 131 220 6939bmckiernan@cenkos.comORTim ChapmanRBC Capital Markets:+44 (0) 207 653 4641tim.chapman@rbccm.comORMatthew CoakesRBC Capital Markets:+44 (0) 207 653 4871matthew.coakes@rbccm.com