ITHACA Energy is set to more than double spending in the UK North Sea to $360m (£225m) this year as the company prepares to join the ranks of firms bringing big fields onstream.
Aberdeen-based Ithaca said the bulk of the money is earmarked for work on the Greater Stella development, approximately 238km south-east of Peterhead, which is expected to come onstream in 2014.
The investment will fund work on development wells and associated production infrastructure.
The increase in spending in the UK planned by Ithaca, from around $160m in 2012, comes amid a boom in investment in the North sea. Oil and gas firms are looking to cash in on strong demand for energy by bringing new fields into production and boosting output from existing assets.
On Wednesday, the Wood Mackenzie consultancy predicted companies would invest over $60 billion in the UK North Sea between 2012 and 2015.
Ithaca said it has all the funding required for this year's programme in place.
The company has a $430m debt facility in place. Ashley Kelty at AIM-listed Ithaca Energy's nominated adviser, Cenkos Securities, said the facility provides the capacity for up to $250m for future acquisitions.
Ithaca bought interests in the Cook and MacCulloch field in the Central North Sea from Noble Energy in October for $38.5m.
The company said 2013 average production is anticipated to be in the range of 6000 to 6700 barrels oil equivalent daily (boed).
Producing assets include a 50% stake in the giant Beatrice field in the Moray Firth. Production averaged 6631 boed in the fourth quarter of 2012.
In May, Ithaca said it had ceased discussions with bidders after concluding these were unlikely to produce a transaction that properly reflected the value of the company.
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