I’ve got Ithaca pencilled in as due for a quarterly production update for Oct/Nov and Dec. This looks likely for next week based on previous announcements.
Due to workovers on Beatrice, I’m not expecting massive numbers as several days would have had shutdowns. But with oil averaging close to $90+ for last quarter, IAE will be generating very decent cash flow from a rough guide average of 5ooobopd.
On the 29th Dec 2010, news was announced that the second work over had been completed…
Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited (“Ithaca” or “the Company”), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, is pleased to announce that stable production from the second workover well (A23) on Beatrice Alpha has increased by approx. 115% to approximately 560 barrels of oil per day (“bopd”) gross (280 bopd net to Ithaca), exceeding management expectations.
Activities will commence in early January 2011 on the third workover well of the campaign (Beatrice Alpha well A28).”END.
Earlier guidance was given along with a 2011 business update on 15th Dec for “Net production for 2011 anticipated to be between 5,500 to 6,000 barrels of oil equivalent per day (“boepd”).(production is ranged since it is subject to certain successful work programmes undertaken in the Beatrice area)” END.
Thus, with the second workover already a success, all eyes are on the 3rd workover which if good should push the average numbers up for 2011.
If Brent averages near $100 for the next quarter, then IAE are going to be generating significantly more cash flow than the previous quarter. Worth noting that Jacky will also be given enhancements and workovers to boost production in 2011. There is plenty of room for IAE to surprise on production numbers this year as they head towards the big introduction of the Athena licence which is planned to come on line in Q4 2011.
Ithaca also trades on the Canadian TSX exchange and is dictated largely by the volume traded across the pond as it is more significant than on LSE. Note the canadian market views link as follows. You can also get delayed prices through to the 9pm (uk time) close.