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Ithaca shares down after Stella stumble

Published: 17:41 09 May 2014 AEST

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Ithaca Energy (LON:IAE) shares tumbled around 10% as it revealed the scheduled start up of the Greater Stella field had slipped.

It told investors that construction work on the field’s floating production facility has progressed more slowly than anticipated, and contractor Petrofac now expects the vessel will be ready for ‘sail away’ next spring.

This means production from the field would come online by mid-2015 at the earliest, not late 2014.

Ithaca said the deal will have a cost of US$5-10mln, though it claims its funding position is not materially affected.

"While good progress has been made with drilling of the third Stella development well and the sub-sea infrastructure installation works, the delay in the FPF-1 sail-away schedule and consequently the impact on the timing of Stella first oil is clearly disappointing,”

“We are working with Petrofac to expedite completion of the vessel modification and commissioning works and deliver start-up of the GSA hub as quickly as possible."

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