Ithaca Hurricane Appraisal Well Shows Good Results (UK)

Ithaca Energy Inc. announces that it has completed a successful drill stem test (“DST”) on the Andrew sandstone interval in the Hurricane appraisal well, 29/10b-8, The DST achieved a gross maximum flow rate of approximately 24 million standard cubic feet of gas per day (“MMscf/d”) with associated condensate of 1,200 barrels per day (“bbl/d”) from a 44/64-inch fixed choke. The wellbore will now be suspended as a future Andrew reservoir production well with the capability of also producing from the Rogaland reservoir.

Well 29/10b-8 was drilled to appraise sands in the eastern lobe of the Hurricane structural closure, located in the Company’s Greater Stella Area (“GSA”) of the UK Central North Sea.

The well intersected 32 feet of Eocene Rogaland sandstone with an average porosity of 28% over the net sands. A full core of the Rogaland reservoir section was extracted. Fluid samples and downhole pressure data have confirmed the presence of liquid rich gas throughout the interval; the samples indicate a condensate-gas ratio (“CGR”) of between 60 and 110 barrels of condensate per MMscf. Sufficient data was obtained to remove the need to perform a well test on this interval. Analysis of pressure data indicates the hydrocarbon-water contact is likely to be the same as that in the Hurricane discovery well, 29/10-4Z (located in the western lobe of the structure), at 9,438 feet True Vertical Depth Subsea.

The well also intersected 20 feet of Palaeocene Andrew sandstone reservoir, similar in nature and thickness to that observed in the main Andrew sandstone reservoir of the Stella field, approximately 10 kilometres east of Hurricane.

The reservoir is of good quality, similar to that of Stella with average porosity of 26% over the net sands, and is considered to potentially be part of a more extensive Andrew sand unit in the area.

During the main flow period lasting approximately 24 hours, the Andrew interval achieved an average gross flow rate of approximately 17 MMscf/d with associated condensate of 870 bbl/d (52 degrees American Petroleum Institute (“API”) Gravity) from a half inch choke. A gross maximum flow rate of 24 MMscf/d with associated condensate of 1,200 bbl/d was also achieved, with the full production potential of the well being limited by surface equipment.

The well will now be suspended for future potential use as a production well for the Andrew reservoir, with the capability of also being used for future production from the Rogaland reservoir.

Nick Muir, Chief Technical Officer, commented:

“The successful results of the Hurricane appraisal well have clearly demonstrated the significant potential of the Andrew reservoir play fairway in the Company’s Greater Stella Area. A work programme has already been launched to assess the development options and ultimately recoverable volumes for Hurricane, both in terms of the Rogaland and Andrew reservoirs, and the optimal solution for its integration into the ongoing development of the nearby Stella and Harrier fields; this will include the likely use of the current well as a producer. All the major contracts for the Stella development have now been awarded and the next key milestone will be the selection of the yard in which the modification works will be performed on the FPF-1 floating production unit.”

The well was drilled using the WilHunter enhanced pacesetter semi-submersible rig, owned by Awilco Drilling plc and managed by the services of Applied Drilling Technology International (“ADTI”).

The Joint Venture partners in the Ithaca operated Block 29/10b (Hurricane) are Ithaca Energy (UK) Ltd (54.66%), Dyas UK Ltd (25.34%) and Petrofac Energy Developments UK Limited (20%).

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Press Release, September 04, 2012