Ithaca Energy Inc.

Ithaca Energy Inc.

July 22, 2009 02:00 ET

Ithaca Energy Inc.: Jacky Field Performance Continues to Exceed Expectations

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 22, 2009) -


Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, is pleased to announce that production from the Jacky field is now flowing at rates in excess of 11,000 bopd.

On the 6th April 2009, the Jacky production well started flowing without artificial lift at gross rates of around 8,800 barrels of oil per day (bopd) (5,920 bopd net to Ithaca). On 20th May 2009, the downhole pump was activated, immediately boosting the flow from the reservoir. Since then, optimisation of pump performance has resulted in progressive production rate improvement and now daily rates are in excess of 11,000 bopd (7,400 bopd net to Ithaca). Daily rates continue to increase.

Average production for the month of June was approximately 9,300 bopd (6,257 bopd net to Ithaca). Combined rates from the Jacky and Beatrice fields producing to the Nigg oil terminal during June were in excess of 10,900 bopd (7,455 bopd net to Ithaca).

The Jacky field has continued to produce 'dry' oil increasing confidence in the likely ultimate production volume. Ithaca is currently proposing to drill a water injection well in the third quarter of 2009 to support and maintain production levels through 2010 and beyond. A drilling rig has been identified for this work.

John Woods, Chief Developments Officer said "The continued excellent performance of the Jacky field has increased our confidence in the sustained production and associated revenue that will provide Ithaca with the financial strength necessary to realise its development portfolio".

Partners in the Jacky field are Ithaca (67.275%), Dyas UK Ltd (22.725%) and North Sea Energy Ltd (10%)

Partners in the Beatrice Field are Ithaca (74.75%) and Dyas UK Ltd (25.25%).

On 29th June 2009, Ithaca announced a second transaction with Dyas UK Ltd that will reduce Ithaca's interests in Jacky and Beatrice to 47.5% and 50% respectively. Closing of that transaction remains on course to be completed before the end of the third quarter of 2009.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters. When used in this announcement, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. These forward-looking statements speak only as of the date of this announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.

The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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