NORTH Sea focused Ithaca Energy achieved record third quarter results following the £203 million acquisition of Valiant Petroleum in March last year, highlighting the big returns firms can generate in the area.
The Aberdeen-based oil and gas independent made $46m (£28.75m) pre-tax profits in the three months to September compared with $2m in the same period last year.
The growth in profits reflects an increase of more than 130% in average production to 11,942 barrels oil equivalent per day in the third quarter from 5061 last time.
Ithaca said the increase was driven by the additional assets acquired through the purchase of Valiant.
This left Ithaca with a portfolio that directors said generates significant free cashflow to support further growth.
"These results, together with the enhanced debt facilities announced in October, provide an excellent financial platform to drive the company forward," said chief financial officer Graham Forbes.
The company increased its main debt facility to $610m from $430m last month.
Ithaca said it aims to build a "highly profitable" 25,000 boed North Sea oil and gas company.
The company said it has made good progress with the Greater Stella area development off eastern Scotland, expected onstream in mid 2014. But Ithaca said total pro-forma production for 2013 is forecast to average approximately 13,000 boepd, compared with previous guidance of 14,000 boed to 16,000 boed.
It said this followed a longer than anticipated shutdown of the Shell-operated Cook field. A shutdown of the Taqa-operated North Cormorant platform affected production from the Causeway Area fields.
Les Thomas, formerly an executive directors of the Wood Group oil services business, succeeded Iain McKendrick as chief executive of Ithaca Energy last month.
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