UK North Sea production company, Ithaca Energy released its Q1 2015 results this week, while providing progress updates on its Greater Stella Area (GSA) development.
The company said it has reduced operating costs by 30% year-on-year, in response to lower crude prices. Its results show that it now spends $35 for each barrel of oil it produces. It produced nearly 12,500 barrels of oil equivalent per day in the quarter, compared to 10,900 in the same quarter of the previous year. While revenue fell, due to lower oil prices, earnings were £9.75 million, benefiting from changes to UK tax arrangements, specifically a reduction in the North Sea supplementary charge (SCT).
The company has also provided more details about progress at the GSA, located in the Central Graben region of the UK North Sea.
In April, drilling tests were completed in the field, in which Ithaca holds a 54.66% stake, confirming expected production of 30,000 boepd. However, start-up is not expected until mid-2016, due to delays to work being carried out in Gdansk, Poland on the floating production platform that will be used on the field. Mechanical completion on the rig is now planned for Q3 2015, and it will leave Gdansk in Q1 2016.
Meanwhile, subsea infrastructure work at GSA is moving forward. Installation of the mid-water arch and of the Single Anchor Loading oil export structures is complete, and the northern drill centre well tie-ins are in place. Ithaca says the remaining installation work should be finalised by the end of the summer.