Oil prices remain under pressure but Ithaca Energy (IAE) has managed to bump up average production rates by a fifth to 12,578 barrels of oil equivalent per day. The figure was in line with guidance and was underpinned by last year’s purchase of a portfolio of North Sea assets from Sumitomo.
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Ithaca pulled in $160m (£102m) in cash flows from existing operations, including oil price hedging gains. Revenues of $62.2m were down 38 per cent from a year ago, but the driller managed to reduce operating expenses substantially over the period. More importantly, it has hedged 6,400 barrels daily at $70 per barrel until June 2017, which means the company can break even if the Brent crude price falls to $10.
