TIDMITH TIDMTTM
RNS Number : 5187L
Ithaca Energy PLC
03 January 2023
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ANNOUNCEMENT.
03 January 2023
Ithaca Energy plc ("Ithaca Energy" or the "Group")
Drilling Activity Update - Isabella and K2
Isabella
Ithaca Energy and its partners today announced the results of
recent appraisal drilling at the Isabella discovery (P1820) in
Block 30/12d-12, located in the Central North Sea of the UK
Continental Shelf.
Upon entering the reservoir, Total Energies informed the
partners (Ithaca Energy (UK) Limited - 10%, Neptune E&P UK
Limited - 50%, Energean Exploration Limited - 10%, Total Energies
E&P North Sea UK Limited - 30% (as "Operator")) that signs of
hydrocarbons were present. Hydrocarbons were encountered in Upper
Jurassic and Triassic sandstone reservoirs, with 148 feet (or 45
meters) of net thickness.
Logging while drilling and wireline logs were acquired to
establish reservoir quality . The Operator intends to complete the
gathering of data, plug and abandon the well, and evaluate the
drilling results to establish commerciality of the reservoir. The
well was drilled to a total depth of 15,600 feet (or 4,754 meters)
in water depths of 262 feet (or 80 meters). The gross cost of
drilling is approximately GBP66.6 million (net to Ithaca Energy:
GBP6.66 million).
Isabella lies about 25 miles south of Total Energies' Operated
Elgin Franklin Field, where Ithaca Energy holds a 6.09% working
interest, and 105 miles east of Aberdeen.
K2
Ithaca Energy is pleased to announce that the partners in
License P2382 (Ithaca Energy - 50%, Dana Petroleum - 50%) have made
the decision to carry out exploration drilling in Block 22/14c of
the Central North Sea - the K2 prospect. As a 50% working interest
holder, and operator, Ithaca Energy will incur 50% of the drilling
costs.
Exploration drilling at the K2 prospect is expected to commence
between June and July 2023 for approximately 41 days in order to
determine the presence of hydrocarbons. The water depth at the
drilling site is 294 feet (approximately 90 meters) and the final
planned depth of the drilling is 9,000 feet (approximately 2,743
meters). Drilling is targeting the Forties Member sandstones.
The total gross cost of drilling is estimated at GBP17 million
in a dry hole case. In the case of success, further gross costs
estimated to be in the region of GBP17 million will be incurred,
providing a total success cost of GBP34 million (net to Ithaca
Energy: GBP17 million).
The drilling costs in relation to both Isabella and K2 are
incorporated in Ithaca Energy's current financial guidance. As
such, nothing in this press release impacts Ithaca Energy's
currently stated guidance, which remains as previously communicated
.
Enquiries
Ithaca Energy
Kathryn Reid - Head of Investor Relations, kathryn.reid@ithacaenergy.com
Corporate Affairs & Communications
FTI Consulting (PR Advisers to Ithaca
Energy) +44 (0)203 727 1000
Ben Brewerton / Nick Hennis ithaca@fticonsulting.com
About Ithaca Energy plc
Ithaca Energy is a leading UK independent exploration and
production company focused on the UK North Sea with a strong track
record of material value creation. In recent years, the Company has
been focused on growing its portfolio of assets through both
organic investment programmes and acquisitions and has seen a
period of significant M&A driven growth centred upon two
transformational acquisitions in recent years. Today, Ithaca Energy
is one of the largest independent oil and gas companies in the
United Kingdom Continental Shelf (the " UKCS "), ranking second by
resources.
With stakes in six of the ten largest fields in the UKCS and two
of UKCS's largest pre-development fields, and with energy security
currently being a key focus of the UK Government, the Group
believes it can utilise its significant reserves and operational
capabilities to play a key role in delivering security of domestic
energy supply from the UKCS.
Ithaca Energy serves today's needs for domestic energy through
operating sustainably. The Group achieves this by harnessing Ithaca
Energy's deep operational expertise and innovative minds to
collectively challenge the norm, continually seeking better ways to
meet evolving demands.
Ithaca Energy's commitment to delivering attractive and
sustainable returns is supported by a well-defined
emissions-reduction strategy with a target of achieving net zero by
2040.
Ithaca Energy plc was admitted to trading on the London Stock
Exchange (LON: ITH) on 14 November 2022.
Important Legal Information
This announcement is not for publication or distribution,
directly or indirectly, in or into the United States (including its
territories and possessions, any State of the United States and the
District of Columbia (" United States ") or any other jurisdiction
where to do so would constitute a violation of the relevant laws of
such jurisdiction. The distribution of this announcement may be
restricted by law in certain jurisdictions and persons into whose
possession any document or other information referred to herein
comes should inform themselves about and observe any such
restriction. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such
jurisdiction. This announcement shall not form the basis of or
constitute any offer or invitation to sell or issue, or any
invitation or solicitation of any offer to buy, purchase or
subscribe for any of the Company's ordinary shares (the " Ordinary
Shares ") or any other securities to any person in any jurisdiction
to whom or in which such offer or solicitation is unlawful,
including the United States or the fact of its distribution, form
the basis of, or be relied on in connection with, any contract or
commitment therefor.
The Ordinary Shares have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the " Securities
Act "), or with any securities regulatory authority of any state or
other jurisdiction of the United States. The Ordinary Shares may
not be offered or sold in the United States, except pursuant to an
applicable exemption from or in a transaction not subject to the
registration requirements of the Securities Act and in compliance
with any applicable securities laws of any state or other
jurisdiction of the United States. There will be no public offering
of the Ordinary Shares in the United States.
-ENDS-
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