Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited reports success in the UKCS 26th Seaward Production License Round, expanding the Company's portfolio in the Greater Stella Area.

Ithaca has been offered, as operator, one new license from the 26th Round, namely Block 29/10d (the 'block'). The block lies in the Greater Stella Area and is neighbour to Block 29/10b (Hurricane discovery) and Block 30/6a (Stella and Harrier discoveries). Ithaca has identified a large structure encompassed by the block which is known as Helios. The structure has already been penetrated by one well drilled in the late 1960s which recovered gas and condensate from the Andrew sand formation, the equivalent and principal reservoir of the Stella discovery which is currently in development.

Further work is required to delineate and define an appraisal well on Helios, which has the potential to offer valuable upside to the development of the Greater Stella Area. Extensive 3D seismic data has already been acquired over the block and under the terms of the licence offered, the licensees have committed to purchase an additional 90km2 of 3D seismic data and to decide to drill or drop the block within 2 years from the start of the Initial Term of the licence. This was the only block applied for by Ithaca, and is consistent with the Company's strategy of selective licensing applications for blocks with early exploitation and commercialisation opportunity.

Joint Venture Partners in the application for the block are Ithaca (68.33%) and Dyas UK Ltd (31.67%).

Tags: Ithaca Energy Inc.