UPDATE 1-Ithaca boosts reserves on Stella well success

* Says targeting first oil and gas in late 2012 from Stella

* Total proved reserves at end-Dec 20.9 mmboe, up 30.6 pct

* Shares up 9.3 pct on LSE
(Adds details, analyst’s comment)

June 9 (BestGrowthStock) – Oil explorer Ithaca Energy (IAE.V: )
(IAE.L: ) reported a rise in total reserves following the
successful appraisal of its Stella well in the North Sea,
sending its shares up 9 percent.

The company said it was targeting first oil and gas from
the Stella field in late 2012.

At April 30, the company’s total proved reserves stood at
20.9 million barrels of oil equivalent (mmboe), up 30.6 percent
from Dec. 31, while total proved and probable reserves grew
12.8 percent to 41.96 mmboe.

Proved reserves associated with the Stella field more than
doubled to 10.2 mmboe, while proved plus probable reserves rose
61 percent to 14.4 mmboe.

“The overall uplift in Stella reserves is attributed to the
additional hydrocarbon column height, the nature of the fluids
found within the structure and the larger area now defined by
the appraisal well,” Ithaca said in a statement.

On April 15, the Canada-based company which focuses on
exploration and development in the North Sea, said Stella field
appraisal well 30/6a-8 had found more oil than expected.

“It is quite positive news and the main take away is that
they have demonstrated over the last 12 months very consistent
delivery and positive momentum on their operational front,”
analyst Toby Pierce of GMP Securities said.

Ithaca shares were up 9.3 percent at 158.5 pence at 1239
GMT on the London Stock Exchange.

Stock Market Analysis

(Reporting by Tresa Sherin Morera in Bangalore; Editing by
Aradhana Aravindan)

UPDATE 1-Ithaca boosts reserves on Stella well success