Ithaca Energy's first quarter production rises

Ithaca Energy on Monday posted a 51 per cent increase in new export production to 6,475 barrels of oil equivalent per day (boepd) for the first quarter.

Ithaca Energy on Monday posted a 51 per cent increase in new export production to 6,475 barrels of oil equivalent per day (boepd) for the first quarter.

Production met the upper range of the 2013 guidance of 6,000 to 6,700 boepd in the first three months of the year.

Cashflow from operations jumped 20% to $34.8m from $28.4m the previous year.

Earnings, excluding unrealised losses on financial instruments of $11m, came to $14.6m, compared to $12m a year earlier.

The company proved resilient to average realised oil prices falling to $114.32 per barrel of oil from $116.42.

In April, the group completed the acquisition of Valiant Petroleum, which is expected to improve production and revenue.

"The integration of Valiant's activities into Ithaca's existing operations is progressing well," the firm said.

"The company has made major steps since completion of the acquisition to realise the substantial cost synergies that are achievable through removal of operational and administrative overlaps."

The acquisition led to a farm-out transaction with Shell UK for exploration assets.

Ithaca has agreed for Shell to farm-out the company's 40% non-operated interest in UK licence P1792, covering blocks 21/30f and 22/26c in the Central North Sea.

The farm-out is in exchange for a partial carry of Ithaca's 20% share of the costs of a well on the Beverley prospect, with the licence terms requiring the well to be drilled by early 2015.

Since the announcement of the Valiant merger, the company has reduced its net exploration expenditure commitments by over $45m, leaving about $30m.

Shares rose to 4.99% to 110.50p at 13:41 Monday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021