Deal boosts Ithaca Energy’s UK offshore production

Ithaca Energy has agreed to pay Sumitomo Corp. $170 million for stakes in three producing oil fields on the UK continental shelf.

Offshore staff

CALGARY, CanadaIthaca Energy has agreed to pay Sumitomo Corp. $170 million for stakes in three producing oil fields on the UK continental shelf.

These comprise 20% of the Cook field (where Ithaca is already a partner) and 7.48% of the Pierce field in the centralNorth Sea, both operated by Shell; and 7.43% in the Perenco-operated Wytch Farm oil field onshore/offshore the English south coast.

Total production from these interests was around 2,500 boe/d last year. However, the Pierce field has been shut in for refurbishment of theHaewene Brim FPSO to receive production from the Brynhild subsea tieback.

Pierce is in blocks 23/22a. It was discovered in 1975, with first oil produced in February 1999. Oil is offloaded to shuttle tankers and most of the gas is re-injected into the reservoir. Ithaca anticipated blow down of the gas cap later in field life.

Later this year the partners plan an infill well/workover campaign to boost production and maximize reserves recovery.

Cook is in block 21/20a (N). It has been developed as a single wellsubsea tieback to the Anasuria FPSO, which also processes production from two other nearby fields. Oil is exported via shuttle tankers and gas through a pipeline to shore.

Last year Shell and its partners commissioned a 4D seismic survey over the field to assist understanding of the reservoir geology and hydrocarbon sweep to date. Results could lead to drilling of another well on the field.

Wytch Farm is in offshore blocks 98/6a and 98/7a, and onshore blocks SY/88b, SY/98a and SZ/8a on the Dorset coast. It has been producing oil since 1979, with onshore/offshore wells drilled from 12 drill pads alongside the onshore oil processing facilities. Currently 64 production wells and 31 water injection wells are in operation.

Oil is exported through a pipeline to the BP-operated Hamble terminal.

An infill drilling/well workover program continues. Aims include targeting undeveloped satellite accumulations, maintaining production levels, and maximized reserves recovery.

06/23/2014

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