Ithaca Energy (IAE) has successfully drilled the third development well of a four-well programme at its Greater Stella Area (GSA) project in the North Sea. The well tested at a restricted rate of 12,492 barrels of oil equivalent per day (boepd), even better than the first two wells, which tested at 10,835 boepd and 10,442 boepd, respectively. As a result, the project’s initial annualised production forecast of 30,000 boepd is nearly entirely de-risked.
Looking ahead, Ithaca will begin drilling a fourth well shortly and expects to release results around the end of the third quarter. The fourth well could be different because it will target the gassy centre of the field as opposed to the other three which targeted the oily rim. First oil from the project remains scheduled for mid-2015.
The company has also acquired interests in three UK producing oil fields for $170m (£100m), adding 2,500 boepd to its current production. It is undertaking a $300m bond offering to pay for it, as well as partially repaying bank debt.
