Ithaca Energy has announced its financial results for the nine months ended 30 September 2021.

Highlights

• Production of 55,000 boepd (65% liquids) for the first 9 months of 2021. Q3 production levels improved due to the resumption of service following the Forties Pipeline System shutdown in Q2, but were still impacted by other planned maintenance activities including a 25-day shutdown on Captain
• Unit operating costs of $19/boe
• EBITDAX of $598 million, benefiting from higher oil and gas prices.
• A significant refinancing program was successfully completed in July which included amending and extending the Reserves Based Lending facility of $1.225 billion to 2026 and a new $625 million bond (senior notes). As part of the refinancing, Ithaca repaid the $250 million Subordinated Shareholder Loan to Delek Group Ltd on 3 August. Following this refinancing program, net debt at 30 September was $1.2bn
• 20 million boe (65% oil) hedged from Q4 2021 into 2023 at an average price floor of $53/bbl oil and 49p/therm gas
• An agreement to acquire 13.3% additional interest in the Alba field from Mitsui E&P UK Limited was signed on 17 September. At completion this will take Ithaca’s interest in the Alba field to 36.7%
• On 2 November a further agreement was signed to acquire 100% of the share capital of Marubeni Oil & Gas UK Limited for $140m, $70m of which is deferred to 2025
• A successful exploration well and 2 appraisal sidetracks were drilled on the Ithaca operated Fotla prospect by the Awilco WilPheonix drilling rig. Hydrocarbons were encountered and work is underway to evaluate the data gathered
• A further exploration well was spudded on 10 August at the Harbour Energy operated Jade South prospect by the Valaris 120 heavy duty jack up rig
• In July, the Heerema ‘Thialf’ completed the removal of the Jacky topsides and jacket structure which included a central column and suction pile foundations

KeyFacts Energy: Ithaca Energy UK country profile