Ithaca Energy Limited has provided operations updates ahead of issuance of the 2019 financial results on 31 March 2020. Ithaca’s 2020 strategic focus is centred on execution of the post-acquisition business transformation programme, building out the long-term growth profile of the business and exploring options to optimise the company’s capital structure, including a potential initial public offering.
Following completion of the Chevron North Sea Limited (CNSL) acquisition and transition programme in November 2019, the key focus of the on-going business transformation programme for the enlarged business over the coming months is centred on process simplification, operational efficiencies and value creation. With the significantly enhanced organic investment opportunity set provided by the CNSL acquisition, a core operational priority for 2020 involves the maturation of additional targets to further enhance long term production and reserves.
The operational strategy of the company is to deliver a balanced blend of investment programmes to sustain and enhance production through continued expansion of the Captain enhanced oil recovery (EOR) programme, infill drilling, satellite field developments and near-field exploration and appraisal activities.
In line with the corporate objectives of Ithaca’s parent company, the Delek Group Limited, during 2020 the company anticipates exploring potential options to optimise its capital structure, including a potential initial public offering
On a pro-forma basis, taking into account the CNSL acquisition from the transaction effective date of 1 January 2019, full year 2019 production averaged 75,000 barrels of oil equivalent per day (boepd), 63% liquids.
Production in 2020 is forecast to average between 70,000 to 75,000 boepd, approximately 65% liquids. This range reflects the expected timing for completion of various infill drilling campaigns, start-up of the Vorlich field, the programme of planned maintenance shutdowns across the portfolio and sensitivities associated with the timing and performance of these operational programmes
As part of a cyclical process, 2020 marks a year of significant planned maintenance shutdowns across the Ithaca Energy portfolio, the majority of which will impact production in the third quarter. Major shutdowns are taking place on the Captain field, the Erskine field, the Britannia Area and the FPF-1 floating production facility that serves the Greater Stella Area (GSA). The shutdowns are driven by execution of routine platform activities (inspection, maintenance and asset life extension programmes), export infrastructure maintenance activities and, in the case of the FPF-1, Vorlich field tie-in works.