Ithaca Energy worth a look

Excitement has been a rare thing at North Sea oil producer Ithaca Energy in recent years. Save for a rally following decent test results on the Stella field last September, the share price has traded sideways since 2012. But output remained in line with expectations during the second quarter and there are enough potential catalysts here to keep things interesting.

"The major focus is on the workover on the Athena field, water injection at Causeway and activities at the Dons fields," Westhouse Securities analyst Jamal Orazbayeva told Interactive Investor. A rig is due to arrive at Athena next month, and water injection at Causeway over the next few months.

There is no word on the Fionn field, where production had already been put back to the second quarter following bad weather in December and January. It could be that production hasn’t started yet, or that any output is immaterial. We'll see. Either way, Orazbayeva reckons Fionn will add only a modest 1,000 barrels of oil per day (boepd) when it does begin producing.

For the second quarter, group average pro-forma production was about 14,400 boepd, compared with the already-flagged target of 13,500-15,500 boepd. The so-called Summit Assets, which Ithaca is buying from Sumitomo Corporation for $170 million (£99.34 million), generated 2,500 boepd during the period and further diversify the portfolio.

There have been no operational changes, and, as previously guided, 2014 production volumes are tipped to be weighted towards the second half of the year following planned summer maintenance shutdowns.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.