Aberdeen-based Ithaca Energy has confirmed that it has more than $125 million spending ‘headroom’ on its balance sheet ahead of planned first hydrocarbons from the Greater Stella Area at the end of the second quarter of 2016.
As anticipated, Ithaca began de-leveraging the business this summer reflecting the benefit of strong operating cashflow generation, lower capital expenditures and the cash received from sale of the non-core Norwegian business.
The reduction in debt has been further accelerated by $66 million from the recently completed equity investment in the company by Delek Group Ltd.
Net debt has dropped from a peak of over $800 million in the first half of 2015 to under $690 million at 31 October 2015, and management anticipate that this level will remain unchanged to the end of this year.
Graham Forbes, Chief Financial Officer, commented: “We are pleased to have completed this six-monthly review of how much we can borrow based on our reserves and to re-confirm the solid funding headroom of the business.
“We’ve taken a number of proactive measures over the year to maintain a robust financial position during this period of lower and more volatile oil prices, ensuring Ithaca has the financial flexibility to manage downside risks and pursue potential opportunities within our core Greater Stella Area.”