Ithaca Energy recovers after successful sidetrack well results

After falling as low as 165p today as the UK and Canadian markets fell heavily on concerns about the fall out from the Greece crisis, Ithaca Energy (IAE) recovered to finish flat at 176p on good news from the North Sea Stella field. 

The RNS delivered at 4.30 stated "The sidetrack well (30/6a-8Z) in the Stella field has confirmed a fully hydrocarbon-saturated reservoir interval in the Andrew sandstone. Successful sampling and pressure tests have also provided essential fluid composition information to appropriately size and plan the development of the Stella field. Well 30/6a-8Z was drilled as a geological sidetrack to further appraise the Stella field, in particular to determine the nature of the hydrocarbons at an intermediate depth in the reservoir up-structure from the initial vertical well (30/6a-8). Data acquired during the operation now permit accurate interpolations to be undertaken that define the compositional changes from gas and condensate to oil with increasing depth. No further drill stem testing was required that would enhance existing data already provided by appraisal wells drilled on the crest of the structure. All objectives have been fully met by the drilling programme and the Company can now integrate this latest information into engineering studies and define the most appropriate development strategy. The well intersected an 18 foot (true vertical thickness) section of Paleocene Andrew sandstone reservoir, a similar thickness to that seen in other wells on and near the Stella structure. A full suite of wireline logs have been acquired and indicate porosities up to 27% providing further confirmation of the lateral extent and quality of the reservoir interval. A full set of pressure data has been acquired to allow the Company to commence detailed analysis to determine the depth of the gas/oil contact in the Andrew reservoir, above the light oil encountered in the vertical well (30/6a-8). Data was also gathered over the Ekofisk chalk interval penetrated by the well. Ithaca has commissioned Sproule Associates Limited to provide an updated reserves report that will reflect the results of this drilling programme. The report is expected before the end of Q2 2010, at which time a further announcement will be made. The Stella appraisal programme is complete and it is predicted that the rig will be demobilized after 89 days on location (compared to a pre-drill estimate of 79 days). The final cost of the programme is anticipated to be within budget."

More stock market falls as euro zone worries persist

The FTSE 100 is currently down 50 points to 5,349 and Dow Industrials futures are down 60 points at 10,872 as continuing worries over the health of the euro zone dominate. Investors are concerned that Greece's problems may extend to Spain and Portugal. A national strike in Greece has also not helped sentiment with riots breaking out and flights grounded out of Athens during the afternoon.

The U.S. April ADP employment report also came in slightly light of expectations which has not helped sentiment.

Prudential (PRU) fell 2% to £5.48 as it announced a delay in a rights issue to fund the buy out of  AIG's Asia unit AIA in a $35.5 billion acquisition as the FSA questioned the capital adequacy of the combined company.