ITHACA Energy has declared that output volumes are running ahead of guidance as it said work on the floating production vessel that will be used on the Greater Stella Area is nearing completion.
North Sea-focused Ithaca said average production was about 9,800 barrels of oil equivalent during the last quarter.
It means average production for the first half was about 9,400 boepd.
Ithaca delivered the production update as it said the final touches are being made to the FPF1 floating production facility.
The vessel is currently being modified by Petrofac at the Remontowa shipyard in Poland, with Ithaca noting that the modifications are “essentially complete”.
However, with the vessel expected to leave the yard later this month, before final marine system trials begin offshore Gdansk, production is now expected to begin on Stella in three months’ time
– later than the September start previously slated.
Ithaca chief executive Les Thomas said: “The FPF-1 works are now being finalised. We are delighted with the quality and completeness of the vessel, having achieved our key objective of completing the onshore scope in the yard and avoided costly carry over of unfinished work offshore.
“Our existing production business is performing well, with volumes running ahead of guidance and continued deleveraging being delivered ahead of Stella start-up.”
Ithaca said full-year base production guidance remains unchanged at 9,000 boepd excluding any contribution from the Stella field, which lies 175 miles east of Aberdeen.
It noted the additional contribution from the Stella start-up will depend on the exact timing of the first hydrocarbons from the field.
It anticipates an initial annualised production of around 16,000 boepd net.
The planned two-week Brent System shutdown that will impact production from the Northern North Sea fields is now scheduled to take place in October.
Shares in Ithaca edged up 0.38p at 67.25p.
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