Ithaca Energy Q1-2016 Financial Results

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) (“Ithaca” or the “Company”) announces its results for the three months ended 31 March 2016 (“Q1-2016” or the “Quarter”).

    Resilient cashflow generation during the Quarter

Average production of ~9,000 boepd – in line with guidance
$44 million cashflow from operations, driven by reduced operating costs and hedging gains (cashflow per share $0.11)
Material reduction in operating costs to $25/boe, 17% below 2016 forecast of $30/boe prior to Stella start-up
Earnings of $18 million (earnings per share $0.04)

    Continued deleveraging during the Quarter and strong liquidity position

Substantial deleveraging – net debt reduced from a peak of over $800 million in the first half of 2015 to $630 million at end Q1-2016
Over $100 million of funding headroom maintained following the RBL redetermination in April 2016, with total debt availability in excess of $730 million
Significant commodity price protection – 8,800 boepd hedged from end Q1-2016 until mid-2017 at an average price of $61/boe, with a mark-to-market value of $94 million at end Q1-2016

    Material near-term step-change in production and cashflow from the Greater Stella Area (“GSA”)

On track for first production from the Stella field in September 2016, with FPF-1 sail-away in June, in line with previous guidance
Production set to more than double to 20-25,000 boepd
Company unit operating costs set to reduce to $20/boe
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Source: Ithaca Energy
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