(MENAFN- ProactiveInvestors)North Sea oiler Ithaca Energy (LON:IAE TSE:IEA) expects to more than double production in 2016 to around 25000 barrels and cut capital expenditure by 40%. It comes after output last year totalled around 12100 boepd which just exceeded guidance of 12000 boepd. Les Thomas chief executive said: "We remain confident that good returns can be made in the North Sea with a rigorous cost and risk conscious approach to selective investment in high quality assets. "We believe that today's difficult environment actually provides an opportunity for the company as a focused player in the sector as demonstrated by the acquisition of our interest in Vorlich." He's referring to a strengthening to the group's hold on the Greater Stellar Area in the Central North Sea with the acquisition of a 17% strategic interest in the "Vorlich" discovery from giant TOTAL. The discovery lies 10kmn from the GSA hub and estimated gross proven and probable reserves stand at 20-30 million barrels of oil equivalent. Meanwhile a downer on today's statement was a delay to the Stellar project's development due to the completion of the floating production facility (FPF). The planned sail-away of the FPF-1 from Poland at the end of the first quarter this year has been delayed by six to twelve weeks due to slippage in completion of certain commissioning milestones the firm said. First hydrocarbons from the Stella field are now expected to be in the third quarter. Ithaca added today that it anticipates net 2016 capital expenditure to total around US$50 million - a reduction of over 40% compared to the previous year. In 2016 11500 boepd (52% oil) is hedged at an average price of US$60/boe with those volumes weighted toward the first half of the year it added. Ithaca shares eased 7.32% to stand at 19p each.
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