Ithaca starts oil production at Athena field

Ithaca Energy, the AIM-listed oil and gas group focused on the UK Continental Shelf (UKCS), has reported the successful start-up of oil production from the Athena field which is proceeding as planned.

In a brief statement, the company said that the initial operations phase of the field is in line with management's expectations.

"This involves bringing production from each well online and establishing stable performance of the oil processing and water injection systems," Ithaca said.

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"The company, on behalf of all the Athena field co-venturers, thanks all the individuals and companies that have contributed to this significant milestone in the development of the field."

Shares were trading 1.38% higher at 179.44p in early trading on Monday morning.

Trap Oil, which expects its acquisition of an initial 10% stake in Athena to complete in the second quarter, said that this morning's announcement is "great news for Trapoil" and "most encouraging". The company said that the balance of the consideration is due by October 31st for a further 5% interest.

Lochard Energy also has a net 10% interest in the field though its wholly owned subsidiary Zeus Petroleum.

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