athena update

As the board is so quiet I thought I would bring some life into the LHD Thread and post this update on Athena.

This is from the Ithaca half yearly report and as the company has not released an announcement as far as I can tell I thought I would go ahead and do it for them......

...Athena

Successful start up of oil production from the Athena field was achieved in late May 2012. The operational
program following start-up has been focused on achieving stable production from the field and the processing
plant on the BW Athena Floating Production, Storage and Offloading vessel ("FPSO"). The ongoing reservoir
evaluation work program continues to assess the potential of the wells and the optimum production rates for the
maximization of oil recovery from the field.

The execution of the post start-up operational program has progressed as planned. All the production facilities
are fully commissioned and the shuttling of crude oil cargoes from the FPSO to the Ithaca operated onshore Nigg
oil terminal using the Betty Knutsen shuttle tanker, to enable the aggregation of Athena oil into larger sales
parcels at Nigg, is operating efficiently.

The FPSO is operating as anticipated, with the processing plant being optimized to deliver stable and efficient
day to day operations. Normal production downtime on the field has been taken over recent weeks to resolve
various minor FPSO processing plant works that are standard for a field in the post start-up operational
period.

As previously announced, currently three of the four production wells on the field are flowing as a result of a
downhole restriction in one of the wells ("P1 well"). Testing has shown that there are no issues with the
integrity of the P1 well or performance of the reservoir in the area of the field drained by the well. The
changeable flow rates achieved from the P1 well during initial testing indicated that the restriction is likely
attributable to a blockage in the production tubing located within the well.

Hydraulic intervention operations using the existing field facilities are still being performed and these have
so far resulted in the flow rate of the P1 well being increased from 300 bopd to 600 bopd. The P1 well has been
kept shut-in outside testing periods as the well's downhole electrical submersible pump would be operating
outside its design limits at the reduced flow rate.

The opportunity has been taken to implement a water injection strategy that involves the injection of greater
volumes of water than is required for simple voidage replacement, with a view to establishing stronger pressure
support for the field. The field continues to produce "dry" oil and positive pressure results are being
indicated following the increase in water injection rates.

Given the results of the hydraulic operations that have already been performed on the P1 well, a more targeted
intervention involving the use of a Remotely Operated Vehicle Support Vessel ("ROVSV") is planned in the event
that hydraulic intervention does not produce further results. This will involve the pumping of fluid directly
into the P1 well flowline from the ROVSV in order to achieve higher injection rates than is possible from using
the facilities on the FPSO. This approach will also avoid the requirement to shut-in production from the other
three producing wells during the completion of intervention operations. A vessel has been secured for the
operation and it is anticipated to be available to commence preparation of the intervention program in
September 2012, dependent on the time taken by the vessel to complete already contracted operations on other
fields. The estimated cost of the intervention is approximately $120,000 net to Ithaca.

Should the restriction not be eliminated using the ROVSV, a rig based workover would be anticipated. The
Company is currently in discussion with potential rig providers in order to prepare for such an outcome.

Further information on the status of the restricted well will be provided once either stabilized production
from the well has been achieved following the results of the planned work program or the contingent rig based
intervention is to be executed..............

Cheers
Mackec