Company Report: Ithaca Energy
Next generation oil and gas company Exec Digital gains unlimited access to Ithaca Energy, a leading oil and gas exploration and development company, and learns more about the discovery of gas on the Carna prospect and the superb performance achieved on the Jacky Field Development

Ithaca Energy is a Canadian independent oil and gas exploration and development company with offices in Calgary, Canada, London, England and Aberdeen, Scotland.

Incorporated in 2004, and listed on several exchanges, including LSE AIM, it is focused on what it calls "the exploration and development of oil and gas reserves in the North Sea" on the UK Continental Shelf.

"Our objectives are to develop existing discoveries, explore for new discoveries and acquire assets," the company's website says.

Ithaca's tactics, it seems, are relatively simple and it has, as a result, built a diversified
portfolio of exploration and development assets.

"This diversity is evidenced by properties in different geographic areas, encompassing multiple play types (both oil and gas), while maintaining a close proximity to producing fields in proven petroleum systems," says the company. "Ithaca's interests range from 20 percent to 100 percent in 30 blocks or partial blocks under 16 licences."

Its participation in the Seaward licensing rounds has diversified the portfolio further still and its Q1 2009 results showed that, in the three months to March 31, 2009, Ithaca's total fixed assets increased to $311.0 million.

IN THE UK
Ithaca Energy Inc's wholly owned UK subsidiary, Ithaca Energy (UK) Limited, is an independent oil and gas company with exploration, development and production assets in the UK sector of the North Sea.

That company recently announced that the 42/21b-5z well - the Carna Well - has encountered a significant gas reservoir.

It too revealed that Northern Offshore's Energy Enhancer rig was contracted to "begin completion" of the Jacky production well, as planned, and that Beatric Bravo production has been reinstated.

It has also entered a five-year agreement with BP Oil International Limited for the sales and marketing of Ithaca's "qualifying oil production" from the North Sea.

CARNA WELL
According to Ithaca, partner Venture Production has discovered gas on the Carna prospect in the UK North Sea.

The 42/21b-5z well was "spudded" by Ensco 92 in December last year, and mechanically sidetracked in January at 2,918 ft TVDSS.

Electric logs have shown the well intersected gas bearing Namurian Millstone Grit Formation at 10029 feet TVDSS (True Vertical Depth SubSea) and indications of formation gas are seen from "mudlogs" down to 11440ft TVDSS.

Logs also show that the well reached TD at 11519ft TVDSS, while so-called "porosities" in the four distinct gas bearing sections of the reservoir range from 14 percent to seven percent.

"A 294 foot core was recovered and early analysis of the core indicates that permeability ranges from 10mD to 0.1mD," says Ithaca. "The well results to date indicate that the reservoir and its properties bear similarities to the producing Kilmar field."

John Woods, Chief Development Officer of Ithaca added: "This is good news for Ithaca."
Carna is owned by Venture Production (56 percent), Ithaca Energy (UK) Limited (29.9 percent), Dyas UK Limited (10.1 percent) and EWE Aktiengesellschaft (four percent).

JACKY FIELD DEVELOPMENT
Ensco 92's extended stay on Carna has meant that Ithaca has had to contract another barge, Northern Offshore's Energy Enhancer, to complete development work on its Jacky field in the Moray Firth.

The field is located in block 12/21c in the UK Continental Shelf, in water depths of up to 40 meters. It was discovered in April 2007 and development approval was granted by the UK authorities in November last year.

Jacky is owned by operator Ithaca Energy, Dyas and North Sea Energy, and occurs in the Beatrice A sands, a mid-Jurassic sandstone formation. The oil is described as "sweet, waxy and relatively light." It also has a low gas-oil ratio, so there is no significant production, and no export, of gas.

The field started producing in early April 2009, in what is its first phase. A second phase - drilling and completing a second production well and a water injection well - is expected to take place around mid-2010.

Jacky's performance to date has been fantastic, way above expectations (it commenced flowing without artificial lift at gross rates of approximately 8,800 barrels of oil per day (bopd) (5,920 bopd net to Ithaca).

On May 20, 2009, the downhole pumps were switched on and the Jacky field rates have now stabilised at approximately 10,000 bopd (6,728 bopd net to Ithaca)); naturally, Ithaca is delighted.

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