Ithaca gets DECC approval for Athena oil field development

Source: Ithaca Energy

Ithaca Energy (LON:IAE) (TSX:IAE) has received Field Development Plan approval from the UK Department for Energy and Climate Change (DECC) for the Athena oil field.

Gaining FDP approval is a very significant step toward securing first production from the field, which is planned for the third quarter of 2011 at 22,000 barrels of oil per day.

Ithaca can now continue to swiftly progress the execution of the project which involves engineering and fabrication, and installation in the North Sea, 180 kilometers northeast from Aberdeen.

The initial development consists of four production wells supported by one water injection well. Production will be routed via the subsea manifold and a two kilometer, 8 inch flowline to a stand-alone floating production, storage and offloading (FPSO) vessel. Oil production will be exported via shuttle tankers. Produced gas will be used to generate power on the FPSO.

“Ithaca Energy is now in a great position to deliver the next phase of the Athena project, which will involve development drilling and fabrication to meet first production targeted in Q3 2011," said Iain McKendrick, CEO of Ithaca.

On September 9, 2010, Ithaca awarded of two major contracts; the provision of an FPSO and the provision of a semisubmersible drilling rig. Most principle suppliers to the project have now been selected after a competitive bid process.

The Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).



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