During Q4 2013, Iona produced on average 3280 boe/d as Huntington ramp-up continued to increase following the previously announced curtailment of production by the operator of the Central Area Transmission System from mid-September to late November 2013.
Following a period of inclement weather in December, Huntington returned to plateau production levels and was producing more than 34,500 boe/d (6100 boe/d net to Iona) at year end. The Huntington reservoir and FPSO continued to perform well, with Q4 2013 system availability of 94%.
January has seen peak production above 35,450 boe/d (6220 boe/d net to Iona) with average production net to Iona of about 4100 boe/d to 15 January 2014. Production was restricted from 15 January due to the FPSO storage tanks being full and extreme weather preventing the shuttle tanker connecting for offloading. The 16th cargo from Huntington has now been off-loaded and as of 28 January production has resumed.
Huntington has now passed the milestone of producing 3 Mbbl/o with Iona’s net share of production being more than 0.5 Mbbl/o and 0.3Bcf of gas. Average realized oil prices remain at a premium to Brent and recent realized gas prices have averaged USD10.50/mcf.
The working interests in the Huntington field are E.ON E&P UK Ltd. (25% Operator), Premier Oil plc (40%), Noreco Oil (UK) Ltd. (20%), and Iona (15%). In addition to the working interest, Iona holds a gross overriding royalty of 2.55% of the total Huntington production, payable from the Huntington JV Partners.
pictured: Voyageur Spirit FPSO
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