It's been a busy few months for Ithaca Energy (IAE). Last week, the North Sea oil producer announced that one of its partners made a small oil discovery near a producing field in the Norwegian North Sea. Ithaca holds a 10 per cent interest in the exploration licence. The positive well result was nevertheless tempered by news that the high-risk Handcross exploration well failed to encounter hydrocarbons. Ithaca's share of the cost was carried by farm-in partners.
Most importantly, the North Sea oil producer decided in mid-January to re-jig its Greater Stella Area (GSA) development project following better than expected flow test results, pushing back the date of first oil by six months until "the end of 2014". It was a net positive but investors were understandably disappointed with the delay, sending shares in the company down by a sixth after the price had reached a two-year high. Sentiment wasn't improved when several directors exercised options and quickly sold most of their newly acquired shares, even though the net result was an increase in director shareholdings of 403,333 shares.
