2013-09-18 23:56:02 -
Vancouver, British Columbia, September 18, 2013 - Investment firm StoneCap
Securities initiates coverage on Ithaca Energy (TSX:IAE) (AIM:IAE). Analyst
Victor Vallance gives the company an outperform rating and a 12-month target
price of $3.50, which would give investors a projected return of 43% from the
$2.44 price at the time the report was issued.
InvestmentPitch.com has produced a "video research alert" about Ithaca Energy
based on the StoneCap report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "Ithaca" in the search box.
Ithaca is a North Sea oil and gas operator focused on the delivery of lower risk
growth through the appraisal and development of UK undeveloped discoveries, the
exploitation of its existing UK producing asset portfolio, and a Norwegian
exploration and appraisal portfolio.
Although a Canadian company, operations
are conducted from Aberdeen, Scotland.
Ithaca has been operating in the North Sea since 2004 when it acquired
exploration blocks during the 22nd Offshore Licensing Round. Through
participation in subsequent licensing rounds and acquisitions, the company has
accumulated a diversified portfolio of exploration, development and producing
In April of this year, the company closed the acquisition of Valiant Petroleum
for $430 million US, for a combination of cash and shares. Valiant has been a
"game changer" for the company with production increasing from approximately
6,000 to 14,000 barrels of oil equivalent per day, with 11 fields contributing
to production. Total 2P reserves for the combined company are 69.8 million boes.
The primary growth engine for Ithaca over the next year is the Greater Stella
Area development in which the company holds at 54.7% interest. Ithaca's share of
the 2P reserves in the Greater Stella Area development is 33.8 million boes.
This area is surrounded by numerous producing fields and undeveloped discoveries
with major companies holding interests in numerous fields in addition to owning
a large portion of the operating infrastructure. Current development activities
are focused on the construction of a new Ithaca operated production hub.
Analyst Victor Vallance stated, "When fully on-stream, the Greater Stella Area
development is expected to contribute net to the company 16,000 barrels of oil
equivalent per day, taking total company volumes, after factoring in declines
over the next year, to over 25,000 barrels of oil equivalent per day."
The company is trading at $2.50, and with 317 million shares outstanding, is
capitalized at $794 million.
For more information, please visit the company's website, www.ithacaenergy.com
or contact Iain McKendrick CEO at +44 (0) 1224 650 261 or email
For more information about StoneCap Securities or to obtain additional research,
contact them at www.StoneCapsecurities.com.
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
Barry Morgan, CFO
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