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Ithaca Energy plc (“Ithaca Energy” or the “Group”)
Drilling Activity Update – Isabella and K2
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 £66.6 million (net to Ithaca Energy: £6.66 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.
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 £17 million in a dry hole case. In the case of success, further gross costs estimated to be in the region of £17 million will be incurred, providing a total success cost of £34 million (net to Ithaca Energy: £17 million).
The drilling costs in relation to both Isabella and K2 are incorporated in Ithaca’s current financial guidance. As such, nothing in this press release impacts Ithaca Energy’s currently stated guidance, which remains as previously communicated.
Kathryn Reid – Head of Investor Relations, Corporate Affairs & Communications
FTI Consulting (PR Advisers to Ithaca Energy)
+44 (0)203 727 1000
Ben Brewerton / Nick Hennis
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.