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Our Strategy
Our strategy is simple - focus on the exploitation and exploration of massive oil and gas opportunities in the United Kingdom's Continental Shelf.
Why the UKCS - North Sea?
We believe a unique opportunity exists to exploit a mature hydrocarbon basin with previously evaluated geological risks, accessible infrastructure, a stable and encouraging political environment and an attractive fiscal environment. We are focused on the North Sea for the or the following reasons:
- The UK sector of the North Sea contains an estimated maximum 16.8 Bboe of remaining discovered reserves and between 4.7 and 21.0 Bboe of estimated undiscovered recoverable resources
- Larger oil companies have shifted the focus of their capital deployment away from the North Sea, creating an opportunity for smaller companies to acquire and develop UKCS assets.
- The UK government has taken steps to:
- encourage new exploration in areas which were previously the domain of larger players;
- provide access to production facilities; and
- oblige existing acreage holders to commit to work programs, farm-out or surrender their holdings
- Declining North Sea gas supply, combined with limited storage capacity creates a favourable pricing environment for a North Sea gas producer.
- The North Sea is a mature and technically well-understood basin, mitigating exploration risk.
- The North Sea has a well-established infrastructure for oil and gas production, gathering and transportation, as well as ready markets.
Approximately 33.0 Bboe of crude oil, natural gas and NGLs have been produced in the UK to the end of 2004. The UK sector of the North Sea contains an estimated maximum 16.8 Bboe of remaining discovered reserves and between 4.7 and 21.0 Bboe of estimated undiscovered recoverable resources. We have observed that many of the larger oil and gas companies that previously dominated activity in the North Sea have been reducing their exploration efforts, and we believe that many existing undeveloped discoveries may be economically developed and that substantial reserves remain to be discovered through exploration.
Production in the North Sea has matured and the major oil producers view the remaining opportunities as too small for their attention. UK government policy is to encourage new entrants into the North Sea in order to accelerate exploration and development of existing discoveries. Specifically, the DTI has introduced the Promote Licence to encourage exploration activities and investment.
Our Strategy
Ithaca’s strategy is to: |
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- Acquire existing production or discoveries
- Use modern seismic, drilling and production technologies
- Use its technical knowledge to generate and acquire exploration prospects
- Use the commercial skills of management to finance the exploitation of its exploration and development prospects through farm-outs, joint ventures and equity issues
Focus on producing fields or undeveloped discoveries that:
- May be too small to be economic for larger companies
- May need investment, modernization or rehabilitation; or
- May no longer fit with a company's strategy (e.g., a company decides to sell its oil fields in order to shift its focus to gas.)
These fields often have huge potential for additional discoveries. We plan to exploit them fully.
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| Latest News |
Ithaca Energy Announces Response to Endeavour’s Non-Binding Proposal
LONDON, U.K. - CALGARY, ALBERTA, July 7, 2008 -- Ithaca Energy Inc. (LSE-AIM: IAE, TSX-V: IAE), an independent oil & gas company with exploration and development assets in the UK sector of the North Sea, announces that its Board of Directors has unanimously determined that the unsolicited non-binding proposal (the "Proposal") received from Endeavour International Corporation to acquire all of the issued and outstanding shares of Ithaca is not in the best interests of Ithaca shareholders.
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VIEW PRESENTATION
Environmental Performance 2007 Report (pdf)
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