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Press release from Marketwire

Ithaca Energy Inc announces Operations Update

Thursday, June 27, 2013

Ithaca Energy Inc announces Operations Update

02:00 EDT Thursday, June 27, 2013

ABERDEEN, SCOTLAND--(Marketwired - June 26, 2013) - Ithaca Energy Inc (TSX VENTURE: IAE)

Not for Distribution to U.S. Newswire Services or for Dissemination inthe United States Ithaca Energy Inc. Operations Update 27 June 2013Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")reports estimated second quarter 2013 production results and providesan operational update ahead of its 2013 Annual and Special ShareholdersMeeting.Highlights- Net average export production in the second quarter of 2013("Q2-2013" or the "quarter") for the combined pro-forma Ithaca andValiant Petroleum plc ("Valiant") entities is anticipated to beapproximately 14,000 barrels of oil equivalent per day ("boepd"). Thisincludes the impact of planned shutdowns during the quarter.- Total forecast production for the second half of 2013 ("H2-2013")is forecast to be within the Company's guidance range of 14,000 to16,000 boepd.- A number of production enhancement activities, notably on the Donsand Causeway Area fields, are scheduled to boost net production forH2-2013.Q2-2013 ProductionWith three days to the end of the quarter, net export production inQ2-2013 is anticipated to be close to 14,000 boepd, including a fullquarter's pro-forma contribution from the assets acquired as a resultof the Valiant acquisition. Oil production is forecast to account forapproximately 95% of the total.The fields produced strongly during the quarter, although, asanticipated, production was impacted by planned maintenance shutdownson a number of assets, including the Company's operated Beatrice Areainfrastructure (approximately 25 days) and Anglia, together with thenon-operated Topaz field. Scheduled shutdowns were also incurred onthe Shell operated Anasuria floating production, storage and offloadingvessel that serves as the host facility for the Cook field to enablethe re-start of production from another field that uses the vessel.Operations UpdateDonsInfill drilling activities are currently on-going on the EnQuestoperated Don Southwest field. An additional production well on thefield has just been completed and is being brought online over the nextfew days through the "Northern Producer" host facility infrastructure.The rig is currently preparing to commence drilling of a waterinjection well in the same area of the field, to support production andreserves recovery from that area.AthenaDuring the quarter the Athena field completed its first full year ofoperations, with gross production of over 3.6 million barrels havingbeen produced to date.Gross daily production from the field is currently at a reduced level,primarily as a function of one of the four producing wells, the "P2"well, being temporarily shut-in awaiting a repair to the electricalcable serving that particular well. A diving support vessel has beencontracted to perform the necessary operations to fix the electricalfault and reinstatement of production from the well is anticipatedwithin the next few weeks.During the quarter, the Athena field commenced the production of waterwith oil. This is significantly later than originally anticipated. Aspreviously noted, the evolution of the water production profile willnow provide important information for forecasting the ultimate fieldproduction profile and the scope for future potential upside investmentopportunities.Causeway AreaDrilling activities on the Causeway water injection well and the Fionnproduction well were completed in March 2013, prior to completion ofthe Valiant acquisition on 19 April 2013. Since taking control of theassets, the Company has completed the subsea tie-in works required toenable the Fionn well to be put into production and is working closelywith Taqa, the operator of the Causeway Area host infrastructure, tofacilitate start-up of the installed electrical submersible pumps("ESPs") and (Causeway) water injection as soon as practicable.The flow tests that have been performed on the Fionn well sincecompletion of the subsea tie-in works have confirmed that the well hasthe potential to flow at considerably better rates if sidetracked to amore optimal location (the well is a re-completed appraisal well).The Company has decided to utilise a rig option originally held byValiant to sidetrack the Fionn well. It is anticipated that drillingoperations will commence towards the end of 2013. The well will besidetracked to a location updip of the existing well to better optimiseaccess to the prime reservoir formation and to target potential upsidereserves in a secondary reservoir.H2-2013 Production OutlookTotal forecast production for H2-2013 is expected to be within theCompany's guidance range of 14,000 to 16,000 boepd, supported byproduction enhancement activities notably on the Don Southwest field.Production in H2-2013 will be impacted by the second phase of plannedmaintenance shutdown activity on the host facilities serving theCompany's fields. Most significantly, there will an approximately sixweek shutdown of the Causeway Area fields as a result of maintenanceactivities on the Taqa operated Cormorant infrastructure that servesthe fields.Appointment of Norwegian General ManagerBuilding upon the Company's previously announced success in the recentNorwegian 22nd Licensing Round, the Company is also pleased to announcethat it has appointed a new General Manager of its Norwegiansubsidiary; details of which will be announced upon the new GeneralManager joining the Company. This demonstrates the Company'scontinuing commitment to a focused strategy on the NorwegianContinental Shelf.Annual & Special Shareholders Meeting PresentationA short presentation covering the Company's on-going operational andcorporate activities will be given at the 2013 Annual & SpecialShareholders Meeting that is scheduled to be held today at 2.p.m (localtime) in Calgary, Canada. The presentation will be made available onthe Company's website ( immediately prior to themeeting. The presentation contains unchanged data on future productionand cashflows. Updated information on the future oil price hedgesexecuted by the Company is included in the presentation.Enquiries:Ithaca Energy:Iain McKendrick, +44(0) 1224 650 261CEOGraham Forbes, +44(0) 1224 652 151CFOFTI Consulting:Billy Clegg +44 (0) 207 269 7157Edward Westropp +44 (0) 207 269 7230Georgia Mann +44 (0) 207 269 7212Cenkos Securities plc:Jon Fitzpatrick +44 (0) 207 397 8900Neil McDonald +44 (0) 131 220 6939RBC Capital Markets:Tim Chapman +44 (0) 207 653 4641Matthew Coakes +44 (0) 207 653 4871Notes to Oil & Gas DisclosuresIn accordance with AIM Guidelines, John Horsburgh, BSc (Hons)Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and SubsurfaceManager at Ithaca is the qualified person that has reviewed thetechnical information contained in this press release. Mr Horsburghhas over 15 years operating experience in the upstream oil and gasindustry.The term "boe" may be misleading, particularly if used in isolation. Aboe conversion of 6 Mcf: 1 bbl is based on an energy equivalencyconversion method primarily applicable at the burner tip and does notrepresent a value equivalency at the wellhead.About Ithaca EnergyIthaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is an oil and gas operatorfocused on North Sea production, appraisal and development activities.The Company's strategy is centred on building a highly profitable NorthSea oil and gas company by maximising production and cashflow from itsexisting assets, the appraisal and development of existing discoverieson properties held by the Company and the delivery of additional growthvia acquisitions and licence round participation. Not for Distribution to U.S. Newswire Services or for Dissemination in the United StatesForward-looking statementsSome of the statements and information in this press release areforward-looking. Forward-looking statements and forward-lookinginformation (collectively, "forward-looking statements") are based onthe Company's internal expectations, estimates, projections,assumptions and beliefs as at the date of such statements orinformation, including, among other things, assumptions with respect toproduction, drilling, well completion times, future capitalexpenditures, future acquisitions and cash flow. The reader iscautioned that assumptions used in the preparation of such informationmay prove to be incorrect. When used in this press release, thewords"anticipate", "continue", "estimate", "expect", "may","will","project", "plan", "should", "believe", "could", "target" andsimilarexpressions, and the negatives thereof, whether used in connection withoperational activities, production forecasts, budgetary figurescontained in the corporate presentation, potential developments orotherwise, are intended to identify forward-looking statements. Suchstatements are not promises or guarantees, and are subject to known andunknown risks, uncertainties and other factors that may cause actualresults or events to differ materially from those anticipated in suchforward-looking statements. The Company believes that the expectationsreflected in those forward-looking statements and are reasonable but noassurance can be given that these expectations, or the assumptionsunderlying these expectations, will prove to be correct and suchforward-looking statements and included in this press release shouldnot be unduly relied upon. These forward-looking statements speak onlyas of the date of this press release. Ithaca Energy Inc. expresslydisclaims any obligation or undertaking to release publicly any updatesor revisions to any forward-looking statement contained herein toreflect any change in its expectations with regard thereto or anychange in events, conditions or circumstances on which anyforward-looking statement is based except as required by applicablesecurities laws. -ENDS- This information is provided by RNS The company news service from the London Stock ExchangeEND


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